IGI Investment plans to buy stakes of global paint brand in Pakistan

IGI Investments (Private) Ltd, a wholly owned subsidiary of IGI Holdings Limited, has received in-principle approval from its board to explore the acquisition of up to 100% of Akzo Nobel Pakistan Limited.

The potential transaction follows a decision by Akzo Nobel N.V., the Dutch multinational, to exit the Pakistan market, paving the way for a full divestment of its local operations.

A notice filed with the Pakistan Stock Exchange on Wednesday said IGI’s board has authorized the company’s management to conduct due diligence and assess the purchase of up to 98.3% of Akzo Nobel Pakistan’s shares from ICI Omicron B.V. — a wholly owned subsidiary of Akzo Nobel N.V. — and up to 1.7% from minority shareholders.

“The proposed transaction will be carried out subject to the results of satisfactory due diligence, finalization of the transaction structure, negotiation of purchase price with the substantial shareholder, execution of a definitive agreement, and compliance with applicable laws and regulatory approvals,” IGI Holdings said in the statement.

Akzo Nobel Pakistan, part of the global Akzo Nobel Group, is a major player in Pakistan’s paints and coatings industry. Headquartered in Lahore, the company operates nationwide and is known for offering sustainable and innovative coating solutions across various sectors.

The timeline for completion of the potential deal has not yet been disclosed.