UK Paints to Acquire Additional 14.48% Stake in Berger Paints Through Internal Restructuring

UK Paints (India) Private Limited, a promoter group company of Berger Paints India Limited, has announced plans to acquire an additional 14.48% stake in the paint manufacturer through an internal restructuring. Executed under an amalgamation scheme with nil consideration, the move is intended to streamline the group’s structure and reduce operational costs.

According to a filing made to the stock exchanges on Monday, the restructuring involves the transfer of 16,87,88,138 equity shares from Jenson & Nicholson (Asia) Limited, a wholly owned subsidiary of UK Paints. The transaction is expected to be completed on or after December 29.

The transaction, executed under a scheme of amalgamation approved by the National Company Law Tribunal (NCLT) and the Jersey Financial Services Commission, involves nil consideration, according to a company statement. The promoter entity stated that the restructuring aims to rationalise and simplify the group’s existing structure by reducing the number of legal entities and jurisdictions. This move is expected to substantially lower regulatory compliance and administrative expenses, while consolidating oversight and assets at the ultimate holding company level. It also intends to enhance capital efficiency and optimise resource management by pooling financial, managerial, and technical expertise across the group.

Following the completion of the transfer, UK Paints (India) Private Limited’s direct stake in Berger Paints will increase from 50.09% to 64.57%. The company filing clarified that the overall shareholding of the promoter and promoter group will remain unchanged.

Source: Economic Times