Asian Paints International (APIPL) will form a share purchase agreement with SCIB Chemicals S.A.E., Egypt for the acquisition of a 24.3% stake from minority shareholders of SCIB. Asian Paints is a leading paint-manufacturing multinational company. It deals in paints, coatings, and bath fittings services and become the leading player in India as well as Asia. The company will have a majority stake in the subsidiary after the agreement with several minority stakeholders taking exit.
Asian Paints International (APIPL) Will Acquire 24.3% Of Minority’s Stake In SCIB Chemicals S.A.E., Egypt
Asian Paints International (APIPL) is a Singapore subsidiary of Asian Paints. The company has recently made a share purchase agreement with SCIB Chemicals S.A.E., Egypt (SCIB), which is also a subsidiary of Asian Paints International and SCIB. There are several minor stakeholders in the company. However, SCIB is planning to shift the majority chunk to APIPL. Thus, the agreement will take 24.3% of the total stake from the minority. It will provide more control to the Asian Paints over the subsidiary.
SCIB Chemicals S.A.E., Egypt, is also a paint manufacturing company that deals in providing paints and wood coatings products in Egypt. The company is a subsidiary of Asian Paints and has its prominence in the country. Thus, SCIB had a revenue of Rs. 433.95 Crores. On the other hand, its parent company, Asian Paints have a net profit of Rs. 1,256.72 Crore in Q4 2024. It is a gain or increase in the numbers compared to the previous year which was Rs. 1,234.14 Crores. While revenue from operations fell to Rs. 8,701.46 Crores in Q4 2024.
According to the details, the acquisition will take place on or before 30 June 2024. The acquisition will consist of 437,352 shares which will be worth $4.13 million or Rs. 34.42 Crores. APIPL is looking forward to taking more control over its subsidiary and helping in its further expansion in Egypt. Asian Paints is an Indian company that started on 1 February 1942 in India. It is currently expanded to several countries in Asia.
Champaklal Choksey and Chimanlal Choksi are the two founders of the company. The founders aimed high for the company and it has now become an Indian multi-national company. Asian Paints acquisition will take place within a few days. Thus, the company is planning for the acquisition process of shares. SCIB Paints remained profitable for the previous financial year. It is expected to be the same for the upcoming year with projected growth and further expansion. SCIB Chemicals also has its decor training centre.