Asian Paints Ltd. confirmed that it offloaded its entire stake in Akzo Nobel India Ltd. in a large trade on Wednesday.
The transaction accounted for 4.42% of the company's outstanding equity, with 20.1 lakh shares exchanged at an average price of Rs 3,651 apiece, according to an exchange filing. This takes the cumulative value of stake offloaded to Rs 734 crore.
The development comes weeks after the promoters of Akzo Nobel signed a share purchase agreement with JSW Paints. That deal was announced at Rs 2,762.05 per share, marking a 16% discount to Akzo Nobel's market price at the time, and valued the overall transaction at Rs 9,400 crore.
JSW Paints has since launched an open offer at Rs 3,417.77 per share. Despite the offer, Akzo Nobel India's stock continued to trade above the open offer price.
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 had said: "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.
Shares of Akzo Nobel India closed 1.56% lower at Rs 3,627 apiece, as compared to a 0.8% dip in the benchmark NSE Nifty 50. Shares of the company have risen 1.67% in the year-to-date period, and 25.36% in the last 12 months.
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