International. PPG announced that it submitted a new offer to combine with AkzoNobel. The global letter of proposal, presented to Mr. Antony Burgmans, Chairman of the Supervisory Board, and Mr. Ton Büchner, Ceo and Chairman of the Board of Directors of AkzoNobel, detailed the increase in the offer by approximately $26.9 billion, or $28.8 billion.
For its part, AkzoNobel confirmed having received the third unsolicited and conditional proposal from PPG and expressed that in accordance with its fiduciary duties and acting under the Dutch government code, AkzoNobel's Board of Directors and Supervisory Board will carefully review and consider this proposal.
In the letter, PPG Chairman and CEO Michael McGarry said, "We are extending this latest invitation to you and the akzoNobel boards to reconsider your stance and engage with us in creating extraordinary value and benefits for all AkzoNobel shareholders."
"Our revised proposal represents a second increase in price along with significant and highly targeted commitments that we are confident AkzoNobel stakeholders will find compelling. We are ready to work with you quickly to complete a due review and to negotiate a final agreement for the combination."
PPG believes its revised proposal is far superior to AkzoNobel's new autonomous plan, as articulated on April 19, 2017. As evidenced by AkzoNobel's declining share price since its investor update, the capital markets have not recognized any additional value from its new standalone plan, including the enhanced regular dividend and special dividend that AkzoNobel has proposed for 2017.
PPG believes that the long-term value creation from a combination of the two companies will be significant for shareholders of both companies, including the benefits of annual synergies of at least US$750 million, which PPG has estimated based on public information.
