U.S. specialty chemicals supplier PPG Industries Inc. has renewed its bid for AkzoNobel NV, following the Dutch chemical company's announcement of restructuring plans earlier last week.
Amsterdam-based AkzoNobel said April 24 it had received “a third unsolicited and conditional proposal from PPG” to buy all outstanding share capital of the company.
The company said its board of management and supervisory board “will carefully review and consider this proposal.”
Separately, Pittsburgh-based PPG Industries issued a statement the same day confirming the bid.
“We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us on creating extraordinary value and benefits for all of AkzoNobel’s stakeholders,” said PPG chairman and chief executive officer Michael McGarry in a letter submitted to AkzoNobel officials.
The revised proposal includes an 8 percent increase over PPG’s prior proposal March 22 and 17 percent over its original offer on March 2.
Value for the total outstanding equity of AkzoNobel will be approximately 24.6 billion euros ($26.7 billion), under the proposal.
This latest bid follows AkzoNobel’s launch of a new strategy April 19 which was aimed at reassuring company shareholders about its future profitability and growth, in which AkzoNobel’s Specialty Chemicals unit will be separated into a new business unit and divested within 12 months.
Under the new structure, the company will either list the Specialty Chemicals unit as a separate entity or sell it and focus on Paints & Coatings business with “fit-for-purpose” structure and processes.”
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