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Berger Paints gains on acquisition news

The company has agreed to acquire the architectural operations of Sherwin Williams Paints India Private Limited, for an undisclosed sum, through its subsidiary, Brushworks Paints.

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SI Reporter Mumbai
Last Updated : Mar 11 2013 | 3:54 PM IST
Berger Paints India is trading higher by 3.4% at Rs 208 after the company said it has agreed to acquire the architectural operations of Sherwin Williams Paints India Private Limited, for an undisclosed sum, through its subsidiary, Brushworks Paints.

“This transaction will significantly increase the company’s presence in key markets, it builds on our strategy to grow our architectural paint business throughout India and it brings a high quality, committed team of employees to the company,” Berger Paints said in a statement.

Meanwhile, the stock of paint maker has outperformed the market by rising 9% in past four trading sessions after the market regulator SEBI has accepted the request of the company by allowing the promoter entities to divest 0.54% through the offer-for-sale (OFS) route during the twelve weeks cool off period to meet a minimum public holding of 25%. The BSE benchmark Sensex has gained around 3% during the same period.

Promoters hold 75.54% stake in the company. UK Paints India Private Limited holds 45.56% stake and Jenson & Nicholson Asia 14.51%, the shareholding pattern data shows.

The stock opened at Rs 204 and hit a record high of Rs 210 on BSE. As many as a combined 871,617 shares have already changed hands on the counter till noon deals against an average sub 400,000 shares that were traded daily in past two weeks on NSE and BSE.
 

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First Published: Mar 11 2013 | 1:07 PM IST

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