Japan's AICA Kogyo looks to acquire majority stake in Stylam Industries: Sources

Deal talks between Japanese building materials and surface solutions major AICA Kogyo Co. Ltd. and Indian laminates and decorative surface manufacturer Stylam Industries Ltd. are back on track and have reached an advanced stage, according to persons familiar with the matter.

As per sources, the proposed transaction involves AICA Kogyo acquiring a controlling interest in Stylam Industries through a two-step process.

First, the Japanese company is expected to buy around 25% stake from Stylam’s promoter and promoter-family group, followed by an open offer to public shareholders for the additional shares required to take its holding to a majority level of 51% or more.

If, after the open offer, AICA Kogyo’s shareholding remains below 51%, the acquirer is likely to purchase an additional tranche directly from promoters to secure control, sources indicated.

The deal is expected to value Stylam Industries in the range of ₹2,200–2,500 per share, people aware of the development said.

AICA Kogyo, headquartered in Nagoya, Japan, is a leading manufacturer of chemical and building material products including high-pressure laminates, adhesives, coatings, and construction materials. The company operates globally with manufacturing bases across Asia and North America. Its India presence dates back to 2011 through AICA Laminates India Pvt. Ltd., which manufactures and markets decorative laminates under the ‘Sunmica’ and ‘AICA’ brands.

Stylam Industries, based in Panchkula, Haryana, is one of India’s largest exporters of decorative laminates and surfacing products. The company manufactures high-pressure laminates, exterior cladding, and other architectural materials under the ‘Stylam’ brand, with a significant presence in Europe, Asia, and West Asia.

Earlier, CNBC-TV18 had reported on potential discussions between Stylam Industries and AICA Kogyo, but the deal had reportedly hit a roadblock at that time.

The latest developments suggest that both sides have revived negotiations and could be close to finalising a share purchase agreement (SPA) soon.

CNBC-TV18 has reached out to both companies for official comment, and responses are awaited as of publishing time.