Calcutta, Oct. 22: Asian Paints has taken a step forward towards acquiring a majority stake in Ethiopia-based Kadisco Paint. The acquisition could help the paint maker to further cement its presence in the African market, being already present in Egypt.

The company in a filing at the Bombay Stock Exchange today said that Berger International Limited, Singapore, a wholly owned subsidiary of Asian Paints (International) Limited (APIL), has signed a “share purchase agreement” and other “definitive agreements and documents” to acquire a 51 per cent stake in Kadisco.

“The acquisition is subject to approval of the regulatory authorities in Ethiopia. The consideration for the acquisition will be disclosed on closure and completion of the acquisition,” the company said in its disclosure.

APIL in April this year had signed an agreement with Kadisco to acquire the equity stake in the African company.

Kadisco is engaged in the manufacturing and selling of decorative paints, industrial paints, automotive paints, other coatings and adhesives.

“This acquisition will enable the company to expand its international footprint,” the company said in its disclosure.

Profit rises

Asian Paints today reported a 6.25 per cent rise in consolidated net profit in the quarter ended September 30 at Rs 347.30 crore against Rs 326.84 crore in the corresponding quarter a year ago. Consolidated total income was Rs 3,632.95 crore against Rs 3,114.67 crore in the same period a year ago.

K.B.S. Anand, managing director of Asian Paints, said, “Double digit volume growth was witnessed across regions in the decorative paints segment.”