AkzoNobel has confirmed that it has rejected a proposal from PPG Industries Inc. for all of the issued and outstanding ordinary shares in the capital of AkzoNobel.
AkzoNobel said that the proposal “substantially undervalues AkzoNobel and is not in the interest of its stakeholders, including its shareholders, customers and employees.”
The company also announced that as a result of the unsolicited, non-binding and conditional proposal, it has decided to bring forward a review of its strategic options for the separation of its Specialty Chemicals business.
As part of the separation, AkzoNobel will consider various alternative ownership structures for the business including, but not limited to, the establishment of an independent listed entity. The company said that the ultimate structure will be determined by reference to shareholder value maximisation as well as broader stakeholder considerations.
Ton Büchner, CEO, AkzoNobel, said: “Our Specialty 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 focus for both Specialty Chemicals and the Decorative Paints and Performance Coatings group, allowing them to build further on their respective leadership positions.
“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 AkzoNobel’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 AkzoNobel is best placed to unlock the value within our company ourselves.
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