AkzoNobel Signs Agreement to Sell Its Shares in ICI Pakistan

august 6 2012

AkzoNobel has reached an agreement to sell its 75.81 percent shareholding in ICI Pakistan Limited to the Yunus Brothers Group for $152.5 million. The price represents a premium of 30 percent on the market price when the local stock exchange closed on Friday, July 27. The price is subject to adjustments for cash/debt as at the date competition clearance is obtained and for interest from that date until closing.

The transaction is expected to be completed towards the end of this year, once regulatory approvals have been obtained and the purchaser has completed a legally required tender offer for at least 50 percent of the shares in ICI Pakistan held by the other shareholders.

"We are pleased to have reached an agreement to sell our shares in ICI Pakistan," explained Keith Nichols, CFO AkzoNobel. "We are convinced that the Yunus Brothers Group is better suited to achieving its obvious potential, while the deal includes conditions to safeguard the terms and conditions of our dedicated employees there."

Commenting on the agreement, Sohail Tabba, Group Director at Yunus Brothers Group, said: "We are delighted with the agreement to acquire ICI Pakistan Limited. The Yunus Brothers Group is keen to further develop the business of the company, working closely with the existing management and employees."

The agreement follows the successfully completed restructuring of AkzoNobel's activities in Pakistan last month, which entailed the demerger of ICI Pakistan's paints and coatings businesses into the new listed company, AkzoNobel Pakistan Limited. The newly formed company is 75.81 percent owned by AkzoNobel and continues to focus on Decorative Paints, Performance Coatings and Specialty Chemicals.

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