Asian Paints Ltd had acquired 49% of the equity share capital of Obgenix Software Private Limited (brand name ‘White Teak’) from Mr. Pawan Mehta & Mr. Gagan Mehta (‘promoters of White Teak’) in terms of the Share Purchase Agreement and other definitive documents (‘Definitive Documents’) entered into by the Company with the promoters of White Teak. The Company had acquired 49% of the equity for a consideration of Rs. 180 crores (approx.) in April, 2022.
The remaining 51% of the equity share capital was to be acquired in a staggered manner as per the terms of the Definitive Documents.
The Company has, today, acquired further 11% of the equity share capital of White Teak for a consideration of Rs. 54 crores (approx.) from the promoters of White Teak.
The Company now holds 60% of equity share capital of White Teak, by virtue of which White Teak has become a subsidiary of the Company.
The remaining 40% of the equity share capital would be acquired during the financial year 2025 – 2026, for a maximum consideration Rs. 360 crores. The consideration would be based on achievement of defined financial milestones for the business. White Teak achieved a turnover of Rs 108.51 cr in FY23.
Additionally, as per the terms of the Definitive Documents, an earn out amount of Rs. 59.5 crores (approx.), based on achievement of mutually agreed financial milestones, has also been paid to the promoters of White Teak.
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