Konson chemical
It is reported that Akzo Nobel announced on October 1 that it has completed the sale of 10.1 billion euros (approximately US$12.5 billion) of specialty chemicals business to the US private equity giant Carlyle Group (Carlyle Group) and Singapore Government Investment Corporation (GIC).
“Today is an important milestone in Akzo Nobel’s history, creating a dedicated paint and coatings company with a market leading position, a strong global brand, and a clear strategy to create value for all stakeholders.” Chief Akzo Nobel Executive Officer Thierry Vanlancker said, “This is also an important step in the specialty chemicals business. I would like to take this opportunity to express my gratitude to our colleagues and wish them a bright future with Carlyle and GIC.”
Charles Shaver, Chief Executive Officer of Specialty Chemicals, said: “I am very happy to take up a new position at Specialty Chemicals and look forward to working with Carlyle and the GIC management team to achieve long-term success. Specialty Chemicals has a strong global presence. With an influential and dedicated professional team, I believe that through innovation and customer-centricity, based on the company’s leading position in the market, there is a great opportunity to drive additional growth.”
Martin Sumner and Zeina Bain, Managing Directors of The Carlyle Group, added: “We are very happy to invest in specialty chemicals. We are committed to growing our business and continuing to improve its competitive position. Specialty chemicals has a long history, high-quality asset base and employees. Team, outstanding innovation record, and diversified customer and product portfolio. We look forward to working with Charlie and the management team to support Specialty Chemicals to start a new phase as an independent company.”
According to the agreement of the special shareholders meeting on November 30, 2017, Akzo Nobel will return most of the net proceeds from the sale of specialty chemicals to shareholders. More details will be announced in due course.
Thereafter, on October 2, Akzo Nobel announced that after the completion of the sale of specialty chemicals, shareholders will receive 5.5 billion euros. In addition, there is an advance payment of 1 billion euros for the special cash dividend distribution paid on December 7, 2017. A total of 6.5 billion euros will be distributed to shareholders, and most of the 7.5 billion euros of net income promised from the separation of the specialty chemicals business will be distributed to shareholders. The additional 5.5 billion euros of proceeds will be distributed through capital repayment and a 2 billion euro equity merger, a 1 billion euro special cash dividend and 2.5 billion euros in share repurchases.
“This is a clear sign of our fulfillment of our commitments and is committed to creating value for all stakeholders of us as a paint and coatings company.” Fan Di Rui said, “We consulted many shareholders and evaluated various options to determine whether to sell special After the chemical business, most of the net income will be returned in the best and timely manner.”
The capital repayment and share merger will be approved by shareholders at the extraordinary general meeting (EGM) to be held on November 13, 2018. The special cash dividend will be paid shortly after the capital repayment and share merger are completed. The share repurchase will begin after the payment of special cash dividends and may be completed in mid-2020. The shares will be cancelled after the repurchase.
The remaining income will be used to repay debt, costs associated with the transformation, and fixed acquisitions. As of April 19, 2017, it was announced that Akzo Nobel, as a paint and coating company, has a common dividend of 1.65 euros per share, and the dividend policy is still “steadily rising.” Akzo Nobel is committed to maintaining a strong investment grade credit rating.
