Wuthelam Holdings Group will take a majority stake in Nippon Paint Holdings Co., the Japanese company said Friday in an over 1 trillion yen ($9.5 billion) deal, as they seek to meet demand in growing Asian markets.
Wuthelam, already Nippon Paint's top shareholder, will have 55.1 percent of the Japanese firm's voting rights, up from the current 39.5 percent. The purchase of additional shares via a third-party share allotment is expected to be completed on Jan. 1 next year.
Nippon Paint, headquartered in Osaka Prefecture, has strength in paints for industrial and auto use. It has been working with Wuthelam since the 1960s in Asian markets.
Nippon Paint is expected to use the money raised to boost its presence in Asian countries.
The company reported a 36.72 billion yen net profit in 2019 on sales of 692 billion yen.
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