As part of the deal, Asian Paints (South Pacific) Limited, a subsidiary of Asian Paints India, has bought out the stakes of all promoters of Taubmans Paints, Fiji's fourth-largest paint company. Akzo Nobel had 65 percent stake in Taubmans Paints, while Fijian Holdings controlled 35 percent equity, said an Asian Paints statement issued here. The purchase will include Taubmans' business in neighbouring Samoa Islands. Asian Paints (South Pacific) Ltd. will buy the entire stake from both companies at a total cost of $1.42 million, said the statement. The acquisition will be funded through internal accruals. "This is an effort to further consolidate our leadership position in Fiji and strengthen our presence in the South Pacific region," said Ashwin Dani, vice-chairman and managing director of Asian Paints India. "The acquisition will be funded internally by our Fiji subsidiary due to its healthy financials and cash-flow position." "Taubmans' operations, product range and segment presence are complimentary to our existing operations in Fiji. This will enable us derive numerous synergies from this acquisition." Taubmans' consolidated sales in the financial year 2002 were $2 million. It is a profitable company with two manufacturing facilities in Suva and Samoa. Asian Paints (South Pacific) Ltd. is the largest paint company in Fiji with a market share of around 40 percent. It has been operating in Fiji for over 25 years
Source: IANS