Kansai Nerolac Paints to sell entire 60% stake in Sri Lanka subsidiary

Kansai Nerolac Paints has approved the sale of its entire 60% stake in Sri Lankan arm, Kansai Paints Lanka (Private) Ltd, the company said in a stock exchange filing on Thursday, December 11.

The stake

will be sold to Atire (Private) Limited, a Sri Lanka–based entity.

The exchange filing stated, "...has granted approval for the sale of the Company’s entire stake of 60% of the total equity share capital of Kansai Paints Lanka (Private) Limited, the Company’s subsidiary in Sri Lanka, to Atire (Private) Limited, a Sri Lankan entity. The Company will be executing an Agreement for the sale of its stake."

The company will execute a formal agreement for the transaction, following which the Sri Lankan unit will cease to be a subsidiary.

Kansai Paints Lanka is not classified as a material subsidiary, the exchange filing noted.

The company posted its September quarter (Q2) earnings last month. Kansai Nerolac reported consolidated net sales of ₹1,954.18 crore, nearly flat compared to ₹1,951.37 crore a year ago. Net profit rose 9.9% year-on-year to ₹134.93 crore, while EBITDA increased 2.1% to ₹243.69 crore.

Shares of Kansai Nerolac Paints ended lower on Thursday, December 11, by 0.72% at 223.00 on the NSE.

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