AkzoNobel rejects third takeover offer from PPG Industries
Staff Writer |
AkzoNobel has rejected a third unsolicited takeover offer from U.S. rival PPG Industries.
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The offer, which was received on April 24, was sweetened to €96.75 per share, up €6.75 from the second offer. This was made up of €61.50 in cash and 0.357 in shares of PPG common stock.
However, the Dulux owner said on Monday that the latest offer undervalues the company and does not include an appropriate change of control premium, which needs to be based on a valuation reflecting AkzoNobel's strategy, including the recently announced plans to separate Specialty Chemicals and accelerate growth in Paints and Coatings.
The company said it has concluded that its own strategy, presented on April 19, offers a superior route to growth and long-term value creation and is in the best interests of shareholders and all other stakeholders.
Chief executive officer Ton Buchner said: "The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding.
"By contrast, AkzoNobel has outlined a compelling strategy to accelerate growth and value creation which we believe will deliver significant long-term value for our shareholders and all other stakeholders.
"We will deliver this within a clear timeline, without the substantial level of risks and uncertainties attached to the alternative proposal.
"We have a strong track record of delivering on our commitments and are fully focused on accelerating growth momentum and enhanced profitability with the creation of two focused, high-performing businesses - Paints and Coatings and Specialty Chemicals - which will lead to a step change in growth and long-term value creation for shareholders and all other stakeholders."
Akzo's own strategy includes increased shareholders returns, such as a 50% higher dividend for 2017 and €1bn special cash dividend payable in November. ■