Paint maker Kansai Nerolac today said it is in process to acquire 55 per cent equity stake in Bangladesh-based RAK Paints.
The Mumbai-based company has entered into share purchase agreement to acquire equity stake in Bangladesh-based RAK Paints, Kansai Nerolac Paints informed in a regulatory filing.
This would be for a total consideration of Bangladeshi Taka (BDT) 57.26 crore ( Rs 45.81 crore approx), it added.
"With this investment in RAK Paints Bangladesh, Kansai Nerolac aims to increase its foot print in the SAARC countries. We believe that with our technological support, RAK Paints would grow very fast and would become a significant player in the Bangladesh paint industry," Kansai Nerolac Paints Vice Chairman and MD H M Bharuka said.
The deal will be subject to adjustments for borrowings, working capital and fixed assets as at the closing date, it added.
"With many 2 Wheeler companies exploring setting up of plant in Bangladesh, going forward even auto and ARF market will also become significant, which Kansai Nerolac would like to explore," Bharuka added.
Incorporated in 2009, RAK Paints is one of the established paint companies in Bangladesh, having a diverse product range encompassing decorative paints and industrial paints.
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