UK DIY News
Akzo plans to spin off Speciality Chemicals
AkzoNobel, owner of the Dulux brand in the UK and South Africa has confirmed it plans to sell off its Specialty Chemicals division within the next 12 months to boost growth and reward its shareholders.
This decision comes following the rejection of two unsolicited takeover bids by their US competitor PPG Industries. In an attempt to keep shareholders and investors on their side, the paint and chemicals giant said it will increase dividends by as much as 50% and return the "vast majority of net proceeds" from the separation of its Specialty Chemicals unit to shareholders.
"Now is the right time to create two focused, high-performing businesses," CEO Ton Buechner said.
In March, AkzoNobel rejected two offers from PPG, initially worth €21billion, followed by €22.4 billion, stating that the offers undervalued the company.
CEO Buechner said the plan to split AkzoNobel into two separate companies will generate "significant shareholder value in the short, medium and long term. It will be delivered at pace, with a clear timeline and is in the best interest of all stakeholders."
The company said the separation of Specialty Chemicals, either selling it off or giving it a separate listing, would likely create savings of 50 million euros ($53.6 million)
Source: Insight DIY Team
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