Akzo Nobel restructures India business to focus on Liquid Paints Business

In the past few months, Akzo Nobel India Limited is in focus as its Dutch promoter is contemplating sale of its equity shares of Akzo Nobel India Limited. Amidst these rumors, Akzo Nobel India Limited announced internal restructuring which can facilitate Dutch promoter swift exit if at all it desires.

- Anirudha Jain

Akzo Nobel India Limited (“the Company” or “ANIL”) is an Indian arm of multi-national company engaged in manufacturing of wide range of paint products (Decorative and Coatings) through iconic global brands, including Dulux, International, Sikkens and Interpon. Akzo Nobel N.V is the main international holding company of the Akzo Nobel group. Currently, promoters control 74.46% equity stake of ANIL. The equity shares of ANIL are listed on nation-wide bourses.

The Proposed Transaction

The board of directors of ANIL has approved following transactions:

• Slump sale of “Powder Coating Business” to a proposed to be incorporated Indian wholly owned subsidiary of Akzo Nobel N.V through a Business Transfer Agreement and

• Slump Sale of the "International Research Centre (R&D) Business" to a proposed to be incorporated Indian wholly owned subsidiary of Akzo Nobel N.V through a Business Transfer Agreement and

• Acquisition of the intellectual property pertaining to the decorative paints business of ANIL from the ultimate holding company.

Powder Coating business undertaking of the Company, comprising the business of manufacturing, marketing, distribution, and sale of powder coating products in India and select geographies abroad.

International Research Centre (R&D) business undertaking of the Company, comprising the business of international research, development and innovation lab, situated in Bangalore, India, and conducted by the Company.

Intellectual property includes trademarks with goodwill, patents, domain names, business know-how and associated proceedings pertaining to decorative paints business of the Company.