Clariant, DIC, Ciba race for Asahi Songwon stake

Major foreign chemical companies are vying for a stake in Ahmedabad-based pigment manufacturer Asahi Songwon Colors Limited (ASCL). Specialty chemical majors Clariant, DIC and Ciba are said to be holding talks with ASCL for a stake sale. Clariant already holds a 9.39% stake in Asahi. A stake in ASCL would give the buyer access to cost-effective and reliable supplies of raw materials.

ASCL soon will be raising Rs. 44 crores from its initial public offering to fund the expansion project at its Vadodara plant at a cost of Rs. 52 crores. The company has already received a term loan of Rs. 8 crores from the State Bank of India. ASCL’s turnover for FY05-06 was Rs. 24.5 crores and net profit at Rs. 2.6 crores. Unaudited results for the six months of FY 06-07 show a turnover of Rs. 31 crores and the net profit at Rs. 4.6 crores.

Read more in the Business Standard article.