AMSTERDAM, NETHERLANDS: AkzoNobel NV, the Dutch multinational paints and coatings company is exploring new strategic options to sell its speciality chemicals business.
The chemicals business, which had revenues of €4.8 billion in 2016, is strongly positioned with a broad portfolio of leading technologies and chemicals. This split will allow the business in continuing to build and accelerate its market-leading positions across a range of market segments.
“Our speciality chemicals business is an industry leader in many of the markets in which it operates and we are extremely proud of its heritage, performance and people. We are reviewing strategic options to separate it from the company to create a focus for both Specialty Chemicals and the Decorative Paints and Performance Coatings group, allowing them to build further on their respective leadership positions,” said Ton Buchner, CEO, AkzoNobel.
This decision was made following the confirmation that AkzoNobel has rejected an unsolicited, non-binding takeover proposal by PPG Industries Inc, for a public offer on all of the issued and outstanding ordinary shares in the capital of AkzoNobel at a price of €54.00 in cash and 0.3 PPG shares per AkzoNobel share, corresponding to a value of €83.00 per share as per 28 February, 2017 (cum final dividend 2016).
AkzoNobel said PPG’s bid significantly undervalues and is not in the interest of its stakeholders, including its shareholders, customers and employees.
The board of management and supervisory board of AkzoNobel have carefully reviewed and considered the proposal by PPG, together with their financial and legal advisors. In doing so, they have taken into account the long-term interests of all AkzoNobel stakeholders, including the shareholders.
They decided that the PPG proposal substantially undervalues AkzoNobel by failing to reflect the long-term value creation potential of the company. Also, saying that the equity component of the proposal has significant issues, including the high leverage of the proposed combination.
The board also believe the proposal is not in the interest of stakeholders including its customers and employees. The offer would be detrimental to the societies and economies in which AkzoNobel operates, including potentially jeopardising the company’s major contribution to communities and research & development organisations globally and its deep commitment to sustainability. The bid is not in the interests of AkzoNobel employees and would create potential uncertainty for thousands of jobs worldwide.
AkzoNobel did not encourage any talks with PPG on this matter.
“The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties. The proposal is not in the interest of AkzoNobel’s stakeholders, including its shareholders, customers and employees. I firmly believe that AkzoNobel is best placed to unlock the value within our company ourselves,” added Buchner.
© Worldofchemicals News
Read More: AkzoNobel rejects PPG bid; revises options to sell specialty chemicals biz
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