Ici Talked To Asian Paints Brass Before Purchase

ICI India had consulted most of the key promoters of Asian Paintswhich include the Danis, Choksis and the Vakilsand had received their concurrence before going ahead with the contract to pick up a 9.2 per cent equity stake in the paints company from Kotak Mahindra Capital.

According to sources close to the Asian Paints promoters said the families who met senior ICI executives had no objection to the multinational picking up the equity stake in Asian Paints at that time.

The partners, according to sources close to the paints company, also made it clear that they were themselves not interested in picking up their partner Atul Chokseys equity stake which he had sold off to Kotak Mahindra.

 

The discussions held between ICI and the three promoters even before the multinational actually contracted the deal add a new dimension to the controversy between the Indian promoters of Asian Paints and the UK-based multinational.

The promoters have openly opposed ICIs attempt to acquire a minority equity stake in Asian Paints and have clearly asserted that they will oppose such a move.

However ICI in its FIPB application has made it clear that despite the initial hostility, a constructive dialogue is on between the three key promoters of Asian Paints (who control over 40 per cent equity in the company) for a possible alliance between them both in India and abroad.

In its submissions to the government, sources in the ministry point out that ICI has made it clear the multinational has no hostile takeover intention on Asian Paints and the shares were sold by Atul Choksey voluntarily.

ICI executives have made it clear that it would like to work in alliance with the existing shareholders and has no intention of displacing them from the company. Sources in the government said they have also assured that the multinational is not coming up with a public offer to acquire more stake in Asian Paints.