Asian Paints on Friday announced the company, through its wholly owned subsidiary, Asian Paints International Pvt Ltd, Singapore (APIPL), has entered into a share purchase agreement to divest its entire stake in its Indonesian operations to Berger Paints Singapore Pte Limited, Singapore (BPSPL), a subsidiary of Omega Property Investments Pty Ltd, Australia (Omega).
In a regulatory filing, the company said that the deal is valued at SGD 7.5 million, which is approximately equivalent to Rs 48 crore, subject to completion of certain conditions precedent and adjustments at closing. The deal is expected to be closed on or before 31st March, 2025.
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APIPL had set up 2 wholly owned entities, PT Asian Paints Indonesia and PT Asian Paints Color Indonesia, about 9 years ago to tap the architectural coatings opportunity in Indonesia. However, it maintained that the operations in Indonesia remained sub-scale and immaterial to the overall international operations of the company, despite varied strategic steps. “Based on the strategic review of all its businesses, APIPL has decided to divest its operations in Indonesia. The divestment is expected to lead to a recognition of loss of approximately Rs 90 crores in the consolidated financials of the company, subject to necessary adjustments at closing of the transaction,” it said in a statement filed on the exchanges.
Amit Syngle, Managing Director & CEO of Asian Paints, said, “This announced divestment of our operations in Indonesia will enable us to focus on priority markets of Middle East and South Asia and strengthen our international portfolio.”
Earlier this month, Asian Paints had released its fiscal third quarter earnings report with profit at Rs 1128.43 crore, down 23.50 per cent YoY. It reported revenue from operations at Rs 8521.51 crore, down 6.10 per cent as against Rs 9,074.94 crore during the third quarter of previous financial year.
Shares of Asian Paints dropped by 0.38 per cent at 3:00 pm to a trading price of Rs 2,227.50.
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