Reliance Industries considers sale $989 million Asian Paints stake

Reliance Industries considers sale of $989 million Asian Paints stake

7:55 AM, 12th May 2020
Reliance Industries logo

MUMBAI, INDIA: Reliance Industries Ltd is considering selling its stake in India’s largest paint maker valued at about $989 million as the conglomerate steps up efforts to trim its debt, said people familiar with the matter.

The company controlled by Mukesh Ambani, Asia’s richest person, is in discussions with banks for a potential sale of its 4.9% stake in Asian Paints Ltd. through a series of block trades, the people said, asking not to be identified as the information is not public. Reliance holds the stake through Teesta Retail Pvt.

The size and timing of any potential sale haven’t been finalized, and Reliance could decide not to proceed with a deal, the people said. A spokesman for Reliance declined to comment when contacted prior to publication. Later Thursday, the company said in a statement they “firmly deny this development,” without elaborating.

Reliance’s 4.9% stake in the paint maker is worth about 74.9 billion rupees ($989 million), based on the last price.

A stake sale would be the latest in a string of fundraising plans unveiled by Reliance in order to bolster investor confidence, even as the crash in oil prices pulled down profit at the company’s oil-to-chemicals business. Last month, Reliance said that the group’s net debt would be slashed to zero ahead of its previous target of early 2021.

Reliance announced on April 30 that it plans to raise about 531 billion rupees in a rights offer. The decision came days after Facebook Inc. said it would pay $5.7 billion to buy a 10% stake in Jio Platforms, Reliance’s digital arm. Private-equity firm Silver Lake Partners will also invest about $753 million in the unit, the company said on Monday.

Asian Paints is India’s largest paint maker by market cap. It was founded in 1942 and operates in 15 countries with 26 paint manufacturing facilities globally, according to its website. The company announced May 1 that it would launch a range of hand and surface sanitizing products in order to support the government’s coronavirus relief efforts.

Source: Bloomberg



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Saudi Aramco seeking to review price of SABIC deal - Sources

DUBAI: Saudi Aramco is looking to restructure its deal to acquire a controlling stake in petrochemicals maker SABIC after a more than 40% drop in SABI ...

Read more
Merck granted US patents for foundational CRISPR genome-editing technology

NEW JERSEY, US: Merck said that two of its CRISPR-Cas9-assisted genome-editing patents have been allowed in the United States. These allowances provid ...

Read more
Celanese to supply ethylene-based vinyl acetate monomer to Wanwei

DALLAS, US / SHANGHAI, CHINA: Celanese Corporation has recently signed a memorandum of understanding for a long-term commercial agreement with Anhui W ...

Read more
Sinopec starts operations at China's largest petrochemical port

ZHANJIANG, China: Sinopec Corp has put China's largest petrochemical port into operation with the successful docking and unloading of t ...

Read more
Adani Gas declares force majeure amidst Covid-19 lockdown

AHMEDABAD, INDIA: Adani Gas has declared 'force majeure' as demand from transport, industrial and commercial users have declined and construction work ...

Read more
Borealis closes Stenungsund steam cracker following fire

STENUNGSUND, SWEDEN: Borealis reported that a fire occurred at its Stenungsund, Sweden steam cracker. An emergency plan was immediately activated by t ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X