MUMBAI, Jan 28: ICI Plc, the UK-based chemicals and paints giant, is yet to respond to an offer made by Asian Paints promoters for buying the 9.1 per cent stake the British multinational has acquired from Atul Choksey, the erstwhile co-promoter and managing director of the country's largest paints company.Asian Paints has refused to transfer the shares as it perceives the deal as an attempted takeover. The Foreign Investment Promotion Board (FIPB) has not cleared the application filed by ICI.
"Its been quite some time since we made the offer, but have not heard anything from them as yet," an Asian Paints director said.
The FIPB wanted the British multinational to get a no-objection certificate (NOC) from the Asian Paints board, which was refused.
"The matter is unlikely to be resolved now that the general election is round the corner," sources said.
The ICI-Atul Choksey deal was brokered by Kotak Mahindra Capital Company for Rs 128.7 crore. The shares are still with Kotak Mahindra.
ICI India, thedomestic subsidiary of the British multinational, is believed to be waiting for a change in the government at the centre to initiate a fresh dialogue on the transfer of shares with it.
"Colour World" launched
Asian Paints on Wednesday launched "Colour World", a one-stop shop equipped with a tinting system and a touchscreen computer to enable the consumer view the final effect of the colours chosen.
The company says it expects to gain 1 per cent market share annually from the new retailing concept. Asian Paints said it would share the cost at the dealer end by providing lease packages to dealers.
Each new retail outlet, company officials said, would cost the company Rs 6-6.5 lakh. Asian Paints plans to have about 500 such outlets across the country in the first 12 months.
Unlike Jensen & Nicholson, Berger Paints and ICI India, which launched new brands through their tinting systems, all existing brands of Asian Paints under the Apcolite and Royale umbrella would be available to the consumers.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
