9 March 2017
DETAILS
PPG (NYSE:PPG) today confirmed that
it made an attractive and comprehensive proposal
to Akzo Nobel N.V. (AKZA.AS; AKZOY)
on March 2, 2017, inviting AkzoNobel
to enter into negotiations with PPG
on a potential transaction
to form a combined company,
which AkzoNobel rejected.
PPG continues to believe
there is a strong strategic rationale
for the proposed transaction
between PPG and AkzoNobel
and will carefully evaluate and consider
its position and path forward related to its proposal.
Michael McGarry,
Chairman and CEO of PPG
“PPG has long admired AkzoNobel’s businesses,
global presence, culture and principles as well as
its advances in innovative product development
and sustainable business practices.
We believe a combination of our two companies
is a very compelling strategic opportunity.
We are confident that this combination
is in the best interests of the stakeholders
of both companies as it presents
a unique opportunity to build on
the successful legacies of our businesses.
PPG has carefully considered
the interest of all AkzoNobel stakeholders
including shareholders, employees, customers
and the communities it serves
and has proposed its willingness to enter into
serious commitments in respect of all stakeholders.”
AkzoNobel confirms it received an unsolicited,
non-binding and conditional proposal from PPG
for a public offer on all of the issued and
outstanding ordinary shares
in the capital of AkzoNobel
at a price of €54.00 in cash and
0.3 PPG shares per AkzoNobel share,
corresponding to a value of €83.00 per share
as per 28 February, 2017 (cum final dividend 2016).
The Boards have unanimously concluded
that the PPG proposal substantially undervalues AkzoNobel
by failing to reflect
the long-term value creation potential of the company.
The Boards have also concluded
that the equity component of the proposal
has significant issues, including
the high leverage of the proposed combination.
They also believe the proposal carries significant delivery
and timing risk for shareholders, both in relation to
substantial anti-trust issues, pension schemes
and the achievability of proposed synergies.
PPG
Media:
Bryan Iams, +1-412-434-2181
Corporate Communications
bryan.iams@ppg.com
or
Investors:
Scott Minder, +1-412-434-3466
Investor Relations
sminder@ppg.com
investor.ppg.com
Source: PPG
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