AkzoNobel Supports Its Chairman; Calls On Elliott & PPG To Clarify Relationship

(RTTNews) - Dutch paints and chemicals maker AkzoNobel N.V. (AKZA.AS; AKZOY) said Wednesday that its Supervisory Board strongly supports Antony Burgmans in his role as Chairman of the Supervisory Board. The company calls on Elliott Advisors and PPG Industries Inc. (PPG) to clarify their relationship and the history of the communications between the two companies.

AkzoNobel confirmed that it has received a request to hold an Extraordinary General Meeting to dismiss Antony Burgmans as Chairman of the Supervisory Board. The request was received from a number of shareholders led by Elliott Advisors. Elliott Advisors has stated it became a shareholder in AkzoNobel in December 2016.

AkzoNobel said the view of the Supervisory Board is that the removal of Burgmans would be irresponsible, disproportionate, damaging and not in the best interest of the Company, its shareholders and other stakeholders. Therefore the proposed agenda item to remove Mr. Burgmans will be rejected. As per the Dutch company law, the Board will consider the proposal to hold an EGM and respond within the statutory 14 days.

AkzoNobel noted that Elliott Advisors has been threatening to take this action for a number of weeks. This enabled AkzoNobel to consider its position in advance of receiving the request.

AkzoNobel said it became aware on April 11, 2017 that Elliott Advisors intended to privately share potentially price sensitive information with PPG about its decision to request an EGM. AkzoNobel has shared this information with the Dutch Authority for the Financial Markets (AFM) and calls on Elliott Advisors and PPG to clarify their relationship and the history of the communications between the two companies.

AkzoNobel welcomes an open, two-way, and constructive dialog with all shareholders and is currently very actively engaged in discussions with many shareholders. AkzoNobel has engaged fully with Elliott Advisors during recent weeks, including meetings with the CEO, CFO and Chairman of the Supervisory Board of AkzoNobel.

AkzoNobel also reiterated its position on other key matters. It will hold an investor update event on April 19, where it will outline a new strategy and updated financial guidance, including plans for the creation of two focused businesses and enhanced long-term value creation for shareholders and all stakeholders.

AkzoNobel believes that engaging with PPG on the basis of an unacceptable proposal carries the potential of significant downside for the Company including its shareholders and other stakeholders.

The latest proposal from PPG continues to significantly undervalue AkzoNobel and does not substantively address any of the concerns, risks and uncertainties AkzoNobel raised in its response to the first proposal.

AkzoNobel stated that the request from Elliott Advisors does nothing to affect the fundamental inadequacies of PPG's proposals or AkzoNobel's current position.