Asian Paints to infuse Rs 19 cr for majority stake in Weatherseal Fenestration

1 Apr 2022 , 12:43 PM

Asian Paints has entered into the Shareholders Agreement and Share Subscription Agreement with the promoters of Weatherseal Fenestration, Harish Munireddy and Pratibha SB and Weatherseal Fenestration, for, inter alia, infusion of Rs. 19 crore (approx.) for 51% stake by subscription to equity share capital of Weatherseal Fenestration.

In accordance with the Shareholders Agreement and the Share Subscription Agreement, the Company has agreed to acquire further stake of 23.9% in Weatherseal Fenestration from its promoter shareholders, in a staggered manner, over the next 3 years period.

t is also informed that out of 23.9% stake to be acquired in Weatherseal Fenestration: (i) 13.9% stake would be acquired during the FY 2024 – 25; and (ii) 10% stake would be acquired during the FY 2025 – 26. The enterprise value that would be used to compute the consideration for acquisition would be derived at a multiple of 1.5 times the net revenue of Weatherseal Fenestration or 15 times its EBITDA, whichever is lower. The revenue and EBIDTA will be based on the financial year prior to the year of acquisition.

Weatherseal Fenestration has been incorporated in March, 2022 and would be engaged in the business of interior decoration/furnishing, including manufacturing uPVC Windows and door systems.

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