Description

JSW Paints Limited and PACs launch open offer to acquire up to 26% of Akzo Nobel India Limited's voting share capital at INR 3,231.77 per equity share under SEBI (SAST) Regulations.

Summary

JSW Paints Limited, along with its Persons Acting in Concert (PACs) - JTPM Metal Traders Limited (PAC 1) and JSW EduInfra Private Limited (PAC 2), has initiated an Open Offer to acquire up to 1,18,40,482 fully paid-up equity shares representing up to 26.00% of the voting share capital of Akzo Nobel India Limited at an offer price of INR 3,231.77 per equity share. This offer is being made in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Key Points

  • Acquirer: JSW Paints Limited (CIN: U24200MH2016PLC273511)
  • PAC 1: JTPM Metal Traders Limited (CIN: U74999MH2017PLC405988)
  • PAC 2: JSW EduInfra Private Limited (CIN: U85500MH2024PTC418767)
  • Target Company: Akzo Nobel India Limited (CIN: L24292WB1954PLC021516)
  • Offer Size: Up to 1,18,40,482 equity shares (26.00% of voting share capital)
  • Offer Price: INR 3,231.77 per equity share (cash payment)
  • Face Value: INR 10 per equity share
  • Open Offer is not conditional upon any minimum level of acceptance
  • Not a competing offer under Regulation 20 of SEBI (SAST) Regulations
  • Proportionate reduction clause: Open Offer size subject to proportionate reduction to ensure resulting shareholding does not exceed 75% of voting share capital post-completion

Regulatory Changes

Not applicable - this is an offer announcement under existing SEBI (SAST) Regulations, 2011.

Compliance Requirements

  • Public Shareholders of Akzo Nobel India Limited should review the Letter of Offer document for detailed terms and conditions
  • Shareholders who have recently sold their equity shares should hand over the Letter of Offer and Form of Acceptance to the stock exchange member through whom the sale was effected
  • Shareholders seeking clarifications should consult their stockbroker, investment consultant, or contact the Manager to the Offer/Registrar to the Offer
  • Acceptance through tendering of shares as per the process outlined in the detailed offer document

Important Dates

Specific dates for tendering period, last date of acceptance, and settlement timeline to be provided in the complete Letter of Offer document (not detailed in the excerpt provided).

Impact Assessment

Market Impact: This is a significant corporate action involving a major acquisition of Akzo Nobel India Limited by JSW Paints Limited. The open offer at INR 3,231.77 per share provides an exit opportunity for public shareholders at the disclosed price.

Shareholder Impact: Public shareholders holding equity shares in Akzo Nobel India Limited have the option to tender their shares and exit at the offer price. The proportionate reduction mechanism ensures compliance with regulatory shareholding limits.

Strategic Impact: This acquisition reflects JSW Paints’ strategic interest in expanding its footprint in the paints and coatings sector through acquisition of Akzo Nobel India Limited, a well-established player in the market.

Regulatory Compliance: The offer is structured in full compliance with SEBI (SAST) Regulations, with appropriate disclosures and safeguards for minority shareholders.

Impact Justification

Major takeover offer involving acquisition of up to 26% of voting capital of Akzo Nobel India Limited by JSW Paints, significant for shareholders and market participants