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ICI nays Akzo's further proposal
31 Jul '07
2 min read
Akzo Nobel was able to make an increased offer proposal after it had entered into an exclusive arrangement with Henkel KGaA (“Henkel”) for the sale, following completion of its proposed offer, of ICI's Adhesives and Electronic Materials businesses.
Akzo Nobel and Henkel have negotiated a back to back agreement relating to this proposed sale which, subject to the approval of Henkel's Shareholders' Committee, they would intend to execute immediately prior to the formal announcement of an offer by Akzo Nobel.
The exclusivity agreement with Henkel enables both Akzo Nobel and Henkel to each focus on the businesses that offer them most synergies thereby meeting their respective stated strategic and financial objectives. It would also allow Akzo Nobel to return further cash to its shareholders.
Akzo Nobel continues to believe that ICI would represent a highly attractive addition to its coatings business. Akzo Nobel's increased proposal would provide ICI shareholders with a 40% premium to ICI's share price of 464.25 pence on March 9th, 2007, the last business day prior to Akzo Nobel's announcement in relation to the disposal of Organon BioSciences.
Akzo Nobel is evaluating its options. Whilst discussions continue, Akzo Nobel will remain financially disciplined.
There can be no certainty that any further proposal will be made to the board of ICI or that any offer or transaction will result. A further announcement will be made if appropriate.
Akzo Nobel and Henkel have negotiated a back to back agreement relating to this proposed sale which, subject to the approval of Henkel's Shareholders' Committee, they would intend to execute immediately prior to the formal announcement of an offer by Akzo Nobel.
The exclusivity agreement with Henkel enables both Akzo Nobel and Henkel to each focus on the businesses that offer them most synergies thereby meeting their respective stated strategic and financial objectives. It would also allow Akzo Nobel to return further cash to its shareholders.
Akzo Nobel continues to believe that ICI would represent a highly attractive addition to its coatings business. Akzo Nobel's increased proposal would provide ICI shareholders with a 40% premium to ICI's share price of 464.25 pence on March 9th, 2007, the last business day prior to Akzo Nobel's announcement in relation to the disposal of Organon BioSciences.
Akzo Nobel is evaluating its options. Whilst discussions continue, Akzo Nobel will remain financially disciplined.
There can be no certainty that any further proposal will be made to the board of ICI or that any offer or transaction will result. A further announcement will be made if appropriate.
Akzo Nobel
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