AkzoNobel May Sell Only Paints Biz, 3 Firms in Fray

Co may keep industrial coatings; Pidilite, JSW, Indigo to submit financial bids

- Anirudh Laskar

AkzoNobel N.V may sell only its paints business in India while keeping the industrial coatings business, even as three suitors prepare to place financial bids for the maker of Dulux paints, two people aware of the matter said.

Pidilite Industries Ltd, JSW Paints and Indigo Paints Ltd have entered the second round of discussions with the paintmaker, the people cited above said on the condition of anonymity. The company, they said, is expecting a valuation of $1.5-1.7 billion for the consumer paints business.

AkzoNobel, Europe's biggest paintmaker, announced a strategic review of its India business last year. On 17 December, Mint reported that Pidilite, Indigo Paints and JSW have entered the race for Akzo Nobel India, whose parent has hired Citigroup to sell the 74.6% promoter stake.

"The discussions suggest a valuation of at least $1.5-1.7 billion for the business-to-consumer (B2C) business only. It is more likely that the direct consumer-facing paints business could be acquired by one of the three contenders in the second round," one of the two people said on the condition of anonymity.

While Pidilite plans to make a solo bid, JSW Paints may team up with private equity firms Blackstone or TPG, the person cited above said. Indigo Paints may partner Advent International or Warburg Pincus.