One-Third, One-Third, One-Third: How JSW Paints Plans To Fund Rs 13,000-Crore Akzo Deal

JSW Paints' plans to fund its nearly Rs 13,000-crore acquisition of Akzo Nobel India through roughly parts internal accruals, bank debt and private equity support.

Giving a crude breakup of the funding plan, JSW Paints Managing Director Parth Jindal said on Tuesday: "The funding will be a mix of internal accruals and some support from financial creditors through private equity."

"One-third, one-third, one-third ratio of all three," Jindal added during a press conference in Mumbai.

About 70% of funds have been tied up through the Jindal family and internal accruals of the JSW Group, he said. "For the remaining 30%, we are looking at partnering with private equity firms."

He said that JSW Paints had enough offers from PE firms and were in the process of selecting which one to go ahead with. "We have also arranged the balance 30% from the group. So, if we get it, we get it. If not, it's still all funded," he explained.

Last week, JSW Paints announced the acquisition of nearly 75% stake from the Dutch promoters of Akzo Nobel India Ltd. for a consideration of Rs 8,986 crore and an open offer of up to Rs 3,929 crore.

Jindal said that after completing the open offer, it will keep Akzo Nobel India as a listed entity and is not looking to increase stake beyond 75%. He also hinted that Akzo Nobel India will continue with the current management.

Speaking to NDTV Profit, Jindal also said that JSW will change the name of Akzo Nobel India once the acquisition of a majority stake is completed. He also told NDTV Profit that a reverse merger will be carried out down the line for Akzo Nobel India.