Coatings producer Berger International will sell its entire stake in loss making Malaysia-based subsidiary Berger International Sdn Bhd to Royalton Holdings for about 616,500 Singapore dollars (nearly Rs 2.07 crore).
The company has entered into a conditional share-purchase agreement with Royalton Holdings Sdn Bhd to sell 2.4 crore shares of Berger International Sdn Bhd for about 616,500 Singapore dollars, Asian Paints, a majority stakeholder in Berger International, said in a filing to the Bombay Stock Exchange (BSE).
The proceeds from the disposal would be used for the company’s working capital purposes and to fund the operations of the Berger Group, the filing added. The proposal is subjected to necessary shareholders approval, the filing added.
Royalton Holdings is not related to Berger group or the company’s major shareholder, Asian paints, it said. Shares of Berger Paints were trading at Rs 48.90 on the BSE, up 0.62 per cent from previous close.
Source: Business-Standard