AkzoNobel – AKZOY – Signs agreement to sell its shares in ICI Pakistan

Akzo Nobel N.V. (ADR) (PINK:AKZOY) has reached an agreement to sell its 75.81 percent shareholding in ICI Pakistan Limited to the Yunus Brothers Group for $152.5 million (€124.4 million). The price represents a premium of 30 percent on the market price when the local stock exchange closed on Friday, July 27. The price is subject to adjustments for cash/debt as at the date competition clearance is obtained and for interest from that date until closing.

The transaction is expected to be completed towards the end of this year, once regulatory approvals have been obtained and the purchaser has completed a legally required tender offer for at least 50 percent of the shares in ICI Pakistan held by the other shareholders.

“We are pleased to have reached an agreement to sell our shares in ICI Pakistan,” explained Keith Nichols, CFO AkzoNobel. “We are convinced that the Yunus Brothers Group is better suited to achieving its obvious potential, while the deal includes conditions to safeguard the terms and conditions of our dedicated employees there.”

Commenting on the agreement, Sohail Tabba, Group Director at Yunus Brothers Group, said: “We are delighted with the agreement to acquire ICI Pakistan Limited. The Yunus Brothers Group is keen to further develop the business of the company, working closely with the existing management and employees.”

The agreement follows the successfully completed restructuring of AkzoNobel’s activities in Pakistan last month, which entailed the demerger of ICI Pakistan’s paints and coatings businesses into the new listed company, AkzoNobel Pakistan Limited. The newly formed company is 75.81 percent owned by AkzoNobel and continues to focus on Decorative Paints, Performance Coatings and Specialty Chemicals.

ICI Pakistan Limited has been a subsidiary of AkzoNobel since 2008, when the company acquired Imperial Chemical Industries PLC. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges. ICI Pakistan’s business now comprises polyester fiber, soda ash, life sciences and chemicals.

The Yunus Brothers Group is a leading conglomerate in Pakistan with interest in the cement and textile industries, power and real estate. It had revenues of €775 million in 2011.

About Akzo Nobel N.V.  –  AKZOY

Akzo Nobel NV (AKZOY ) is a Netherlands-based manufacturer of paints, coatings and specialty chemicals. AKZOY  operates in three segments: the Decorative Paints businesses supply interior and exterior paint products for the professional and do-it-yourself markets; the Performance Coatings segment supplies coatings for professional end users such as ship builders, steel and appliance manufacturers and the automotive industry, among others; the Specialty Chemicals segment covers chemicals used in the cosmetics, food processing, plastics, paper and asphalt industries, among others.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.