AkzoNobel Rejects PPG Offer, Sees Strategic Options For Specialty Chemicals Unit

(RTTNews) - Paints and coatings maker Akzo Nobel NV (AKZOY.PK, AKZOY) on Thursday announced a review of strategic options for the separation of its Specialty Chemicals business.

The latest decision was after the confirmation that AkzoNobel has rejected an unsolicited, non-binding and conditional proposal from PPG Industries Inc. for all of the issued and outstanding ordinary shares in the capital of AkzoNobel.

The company said the separation of the Specialty Chemicals business, which had revenues of 4.8 billion euros in 2016, would allow the business to continue to build and accelerate its market-leading positions across a range of market segments.

As part of the separation, AkzoNobel will consider various alternative ownership structures for the Specialty Chemicals business including, but not limited to, the establishment of an independent listed entity. The ultimate structure will be determined by reference to shareholder value maximization as well as broader stakeholder considerations.

AkzoNobel had received an unsolicited, non-binding and conditional proposal from PPG for a public offer for AkzoNobel at a price of 54.00 euros in cash and 0.3 PPG shares per AkzoNobel share, corresponding to a value of €83.00 per share as per February 28.

The company noted that PPG's proposal substantially undervalues the firm and is not in the interest of its stakeholders, including its shareholders, customers and employees.