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Firm Looks to Control Nippon Paints Board

Friday, January 26, 2018

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Singapore-based coatings group Wuthelam recently announced that it is looking to become a majority on the board for Nippon Paint Holdings Co. Ltd., citing a belief that the group can create more value for company investors.

Shareholder Proposal

Under Wuthelam’s proposal, Nippon Paint would expand its board from seven to 10 seats, leaving the coatings group the right to name six independent directors. Nominees would include former Jasdaq Securities Exchange President Takashi Tsutsui and Yaskawa Information Systems President Toshio Morohoshi, reported Nikkei Asian Review.

With a 39 percent stake, Wuthelam is currently Nippon Paint’s top shareholder, but currently only group executive Goh Hup Jin is representing its interests on the board.

tokumeigakarinoaoshima, CC-Zero, via Wikimedia Commons

Coatings group Wuthelam recently announced that it is looking to become a majority on the board for Nippon Paint Holdings Co. Ltd., citing the belief that the group can create more value for company investors.

Nippon Paint plans to increase construction paint sales in North America, but Wuthelam also intends to scrutinize the approach the company takes.

Company Ties

In 2013, the coatings group tried to take a larger stake in Nippon Paint, but was met with resistance. This later turned into a compromise where the company turned eight joint ventures into subsidiaries in exchange for Wuthelam’s increased stake.

As it stands, Nippon Paint will reportedly assess its options; Nippon has yet to name any candidates for the board.

Axalta/Nippon Talks

Axalta Coating Systems (Philadelphia) announced Nov. 30, 2017, that talks with Nippon Paint Holdings Co. Ltd. had ended with no agreement.

For Nippon, the attempt to acquire Axalta was part of a move to expand into sales for automotive manufacturers, as well as increase its U.S. footprint.

In its talks with Axalta, Nippon made an all-cash bid that totaled $9.1 billion. The failed talks came on the heels of AkzoNobel’s recent bid to acquire the company, which also fell through.

According to Axalta, Nippon Paint’s Board of Directors was unwilling to meet Axalta’s expectations in regard to company value.

   

Tagged categories: Asia Pacific; Business matters; Business operations; Finance; Good Technical Practice; Nippon Paint; North America

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