International. AkzoNobel confirmed that it received from PPG an unsolicited and non-binding proposal for a public offering on all issued and outstanding common shares in AkzoNobel's capital worth €21 billion.
The Boards unanimously concluded that PPG's proposal substantially undervalues AkzoNobel by not reflecting the company's long-term value creation potential. The Boards have also concluded that the equity component of the proposal has significant problems, including the high leverage of the proposed combination. They also believe that the proposal entails a significant delivery risk and opportunity for shareholders, both in relation to substantial antitrust issues, as well as pension plans and the viability of the proposed synergies.
AkzoNobel's Board of Directors and Supervisory Board also believe that the proposal is not in the interest of stakeholders, including its customers and employees. "The proposal would be detrimental to the societies and economies in which AkzoNobel operates, including potentially jeopardizing the company's important contribution to research and development communities and organizations around the world and its deep commitment to sustainability. The proposal is not in the interest of AkzoNobel employees and would create potential uncertainty for thousands of jobs around the world," the official statement said.
AkzoNobel is currently in the process of reviewing strategic options for the separation of its Specialty Chemicals business.
The Specialty Chemicals business, with revenues of €4.8 billion in 2016, is strongly positioned with a broad portfolio of leading chemicals and technologies serving a wide range of end-user segments, including construction, industrial and consumer goods. The separation will allow the Specialty Chemicals business to continue to build and accelerate its market positions in a wide range of market segments.
