The Hindu : Asian Paints offers to buy controlling stake in BIL

Online edition of India's National Newspaper
Friday, Sep 06, 2002

Business

Business

Asian Paints offers to buy controlling stake in BIL

By Our Staff Correspondent

MUMBAI SEPT. 5. Asian Paints (India) has announced today, at the Singapore Stock Exchange, that it has offered to acquire controlling stake in Berger International Ltd. (BIL), a holding company incorporated in Singapore with no operations in India. Asian Paints has received approval from the Securities Industries Council (SIC) of Singapore for a `partial general offer' (PGO) to acquire 50.1 per cent stake in the paid up capital of BIL. The open offer on the Singapore Stock Exchange will be made for 50.1 per cent stake in the company amounting to around 52 million shares at an offer price of Singapore $0.40 per share. This will result in an outflow of Singapore $20.8 million or Rs. 57.60 crores.

Regarding the funding of the acquisition, Ashwin Dani, vice chairman and managing director, APIL, said, "Better working capital management and low capital expenditure has resulted in consistent free cash flows for the company. The cash flows and low debt of the company will comfortably help finance the acquisition". The largest shareholder, Ariza Holdings, which holds 56.77 per cent stake in the company, has undertaken to offer its holdings to Asian Paints and hence the PGO is expected to be successful.

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