Paints and coatings firm Akzo Nobel India on Friday said it has signed a definitive agreement to divest its specialty chemicals business as a going concern to an affiliate of the Akzo Nobel Group for Rs 3.2 billion (Rs 320 crore).
The transaction is expected to be completed by 31 March 2018, it added.
In November last year, Akzo Nobel India had said it would sell its speciality chemicals business for Rs 3.2 billion (Rs 320 crore).
The business includes the Mahad manufacturing facility for polymer chemistry range of products, the company said, adding that the business also handles a trading portfolio in polymer and surface chemistry products sourced from other units of Akzo Nobel.
Besides, about 80 employees, currently working with the business, will transfer under the deal.
"The total consideration to be received from this sale will be Rs 3,200 million, subject to adjustment for working capital and for an economic effective date of January 1, 2018," the company had said in a statement.
Akzo Nobel NV announced in April 2017 its intention to separate specialty chemicals business from paints and coatings business to create two focused and separate businesses.
"The board of directors believes it will be in the best interest of the shareholders, concerned employees and customers that the India specialty chemicals business is also divested to the said specialty chemicals global entity or its affiliate," the company said.