Kansai paint owns over 90 pct of Freeworld

JOHANNESBURG: Japan's Kansai Paint has acquired more than 90 percent of South Africa's Freeworld Coatings and intends to keep the firm listed on the Johannesburg's Stock Exchange.

The two companies have been locked in a public dispute over the bid since December, when the Japanese firm launched a bid to buy the remaining 72 percent in South African Paint Company it did not already own.

Kansai said in a statement on Sunday it now effectively controls 90.3 percent of Freeworld, after the offer closed on Friday.

Under Johannesburg Stock Exchange rules that would normally require Freeworld to be delisted. However, Kansai said it would ensure that Freeworld works with the board to retain the listing.

Kansai still requires approval from South Africa's competition authorities for the deal.

South Africa's merger regulator dismissed on Thursday an appeal by Freeworld against the timetable of the 1.8 billion rand ($252 million) takeover bid.

Freeworld had said the offer deadline of February 18 did not provide enough time for potential counter bidders and was unfair to shareholders.

Reuters first reported in October that Kansai had acquired the stake in Freeworld and was looking for at least a majority control