THE HAGUE, Netherlands
Industrial paints and chemicals company AkzoNobel said
Wednesday it plans to spin off its Specialty Chemicals unit within 12
months to boost growth and reward its shareholders.
The shake-up at the Dutch multinational comes after it recently
rejected two unsolicited takeover bids by American rival PPG
Industries.
In a move aimed at keeping shareholders happy and loyal,
AkzoNobel said it will boost its dividend by 50 percent 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.
Last month, AkzoNobel rejected offers from PPG worth 21 billion
euros and 22.4 billion euros, saying they significantly undervalued the
company.
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)
AkzoNobel said first-quarter net profit was stable at 240
million euros ($257 million) as revenue rose by seven percent to 3.66
billion euros ($3.9 billion).
Source : http://www.ajc.com/business/akzonobel-plans-spin-off-specialty-chemicals-unit/B7O7R8PZTFzi8nVUZs92TJ/
Source : http://www.ajc.com/business/akzonobel-plans-spin-off-specialty-chemicals-unit/B7O7R8PZTFzi8nVUZs92TJ/
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