New Delhi, Nov 17 Paints and coatings firm Akzo Nobel India has sought shareholders' approval to sell its specialty chemical business as a 'going concern' to an affiliate of the Akzo Nobel Group for Rs 320 crore.
"The specialty chemicals business of Akzo Nobel India Ltd is closely integrated with the global specialty chemicals business of Akzo Nobel," the company said in a regulatory filing today.
It further said: "Given this interdependency, the board believes it will be in the best interest of the shareholders, concerned employees and customers that the India specialty chemical business is also divested to the said specialty chemical global entity or its affiliate."
The business includes the Mahad manufacturing facility for polymer chemistry range of products, the company said, adding that the business also consists of a trading portfolio in polymer and surface chemistry products sourced from other units of Akzo Nobel.
Close to 80 employees working with the business will be shifted.
Akzo Nobel NV had in April announced its intention to separate its specialty chemical business from its paints and coatings porfolio to create two focused and separate businesses.
On November 7, Akzo Nobel said the transaction is likely to be completed by March 31, 2018, after requisite approvals.
"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.
The shares of the company were trading at Rs 1,770.15, up 0.22 per cent in the afternoon at BSE today.