Asian Paints arm sells stake in Berger Paints China
02 Sep 2009
Berger International Limited, Singapore, will divest its entire stake in loss-making Berger Paints (China) for about S$596,000 (about Rs2 crore) to Golden Fly Horse International Holdings Co, Asian Paints said in a filing to the Bombay Stock Exchange yesterday.
Asian Paints is the majority stakeholder in Berger International Ltd, a subsidiary of Asian Paints (International) Ltd.
Golden Fly Horse is not related to Berger group or Asian paints, it said.
The proceeds from the sale would be used for the company's working capital purposes and to fund the operations of the Berger Group, the filing added.
Berger Paints India had earlier said that it will be investing Rs100 crore in a 100,000 tonnes per annum (tpa) water-based paints plant in South India, that will also have a captive emulsions manufacturing unit.
About two weeks back, Berger International has signed a conditional share purchase agreement for divestment of its entire equity shareholding in Berger International Sdn. Bhd., Malaysia, to Royalton Holdings Sdn Bhd for about S$616,500 (See: Berger sells losing Malaysian arm to Royalton Holdings).
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