Berger sells losing Malaysian arm to Royalton Holdings
19 August 2009
Paint and coatings producer Berger International Ltd will sell its entire stake in its loss-making Malaysia-based subsidiary Berger International Sdn Bhd to Royalton Holdings for about 616,500 Singapore dollars (Rs2.07 crore).
The company has entered into a conditional share-purchase agreement with Royalton Holdings Sdn Bhd to sell 2.4 crore shares of Berger International Sdn Bhd for about 616,500 Singapore dollars, Asian Paints, a majority stakeholder in Berger International Ltd, said in a filing to the Bombay Stock Exchange on Tuesday.
The proceeds from the disposal would be used for the company's working capital purposes and to fund the operations of the Berger Group. The proposal is subjected to necessary shareholders approval, the filing added.
Royalton Holdings is not related to the Berger group or the company's major shareholder, Asian paints, it said.