Berger to acquire remaining 3.59pc stake in STP 'shortly'

Berger Paints India Ltd plans to soon acquire the remaining 3.59 per cent stake in STP Ltd, taking the total shareholding in the construction chemical company to 95.53 per cent.

The paint major said the business and expertise of STP will significantly support Berger's existing construction chemicals, waterproofing and protective coatings verticals.

"Berger intends to acquire another 3.59 per cent (in STP Ltd) shortly, as per the share purchase agreement... thus acquiring a total of 95.53 per cent, at an enterprise value of Rs 167.5 crore," it said in a release.

STP, formerly known as Shalimar Tar Products Ltd, become a subsidiary of Berger with effect from November 1, it said.

The Kolkata-headquartered company's board had approved the takeover of 95.53 per cent in STP on October 15.

The additional 3.59 per cent stake in the company would cost Berger around Rs 6 crore.

STP reported a revenue of Rs 174.2 crore in FY19.