Asian Paints to acquire Obgenix Software (White Teak)

1 Apr 2022 , 01:18 PM

Asian Paints has entered into a Share Purchase Agreement and other definitive documents with the shareholders of Obgenix Software (popularly known by the brand name of White Teak) for the acquisition of 100% of its equity share capital in a staggered manner over the period of next 3 (three) years, subject to certain conditions.

The Company would be acquiring 49% of its equity share capital for a consideration of Rs. 180 crore (approx.) along with an earn out upto a maximum of Rs. 114 crore, payable after a year, subject to achievement of mutually agreed financial milestones.

The remaining 51% of the equity share capital would be acquired in a staggered manner, the consideration for which would be based on achievement of defined financial milestones for the business:
– 11% of the equity share capital would be acquired for a maximum consideration of Rs. 66 crore during the financial year 2023 – 2024; and
– 40% of the equity share capital would be acquired for a maximum consideration of Rs. 360 crore during the financial year 2025 – 2026.

White Teak is a private limited company engaged, inter alia, in the business to design, trade or otherwise deal in all types and description of decorative lighting products and fans, etc.

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