The Netherlands: Speciality Chemicals Akzo Nobel Rejects Proposal from PPG
Akzo Nobel announced a review of strategic options for the separation of its Specialty Chemicals business. This follows the confirmation that it has now rejected an unsolicited, non-binding and conditional proposal from PPG Industries for all of the issued and outstanding ordinary shares.
Amsterdam/The Netherlands — Akzo Nobel confirms it received an unsolicited, non-binding and conditional proposal from PPG for a public offer on all of the issued and outstanding ordinary shares in the capital of Akzo Nobel at a price of € 54.00 in cash and 0.3 PPG shares per share, corresponding to a value of € 83.00 per share as per 28 February, 2017 (cum final dividend 2016).
Ton Büchner, CEO, Akzo Nobel: “Our decision today was brought forward due to recent events. 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 Akzo Nobel’s stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it. Along with my colleagues on our Boards, our executive team and our thousands of employees, I firmly believe that Akzo Nobel is best placed to unlock the value within our company ourselves. We understand our role in society and want to protect our ability to continue to invest in communities, research and development, innovation and sustainability in the countries in which we operate.”
As part of the separation, the company considers various alternative ownership structures for the Specialty Chemicals business including, but not limited to, the establishment of an independent listed entity.
The Specialty Chemicals business, which had revenues of € 4.8 billion in 2016, has a broad portfolio of technologies and chemicals which service a wide range of end-user segments including construction, industrial and consumer goods. The separation is part of a strategy that intends to allow the Specialty Chemicals business to continue to build and accelerate its positions across a range of market segments.