Berger Paints India Ltd. plans to soon acquire the remaining 3.59 percent stake in STP Ltd., taking its total shareholding in the construction chemical company to 95.53 percent.
The paintmaker on Saturday said the business and expertise of STP will significantly support Berger Paints' existing construction chemicals, waterproofing and protective coatings verticals.
“Berger intends to acquire another 3.59 percent (in STP Ltd.) shortly, as per the share purchase agreement...thus acquiring a total of 95.53 percent, at an enterprise value of Rs 167.50 crore,” it said in a statement.
STP Ltd., formerly known as Shalimar Tar Products Ltd., become a subsidiary of Berger Paints with effect from Nov. 1, it said. The Kolkata-headquartered company's board had approved the acqusition of 95.53 percent in STP on Oct. 15. Acquiring the additional 3.59 percent stake in the company would cost Berger Paints around Rs 6 crore.
On Friday, Berger Paints shares fell 3.53 percent to Rs 508.60 apiece on the BSE while the benchmark Sensex gained 0.09 percent to end the day at 40,165.03 points.
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