AkzoNobel announced on October 1 that it has completed the sale of special chemical businesses worth 10.1 billion euros ($ 12.5 billion) to the US private equity giant Carlyle Group and Singapore Government Investment Corporation (GIC).
"Today is an important milestone in AkzoNobel's history, creating a dedicated paint and coating company with a market-leading position, a strong global brand, and a clear strategy to create value for all stakeholders." AkzoNobel Chief Executive Officer "This is also an important step in the specialty chemicals business, and I would like to take this opportunity to thank our colleagues and wish them a better future with Carlyle and GIC," said Thierry Vanlancker, CEO.
Charles Shaver, CEO of Specialty Chemicals, said: "I am very pleased to take up a new position at Specialty Chemicals and look forward to working with Carlyle and the GIC management team to achieve long-term success. Specialty Chemicals has a strong global presence With a team of influential and dedicated professionals, I believe that through innovation and customer focus, based on the company's leading position in the market, there is a great opportunity to drive additional growth. "
The Carlyle Group Managing Directors Martin Sumner and Zeina Bain added, "We are pleased to invest in specialty chemicals, and we are committed to growing our business and continuing to enhance its competitive position. Specialty chemicals have a long history, a quality asset base and employees Team, a proven track record of innovation, and a diverse customer and product portfolio. We look forward to working with Charlie and the management team to support the start of a new phase of specialty chemicals as an independent company. "
According to the agreement of the special shareholders meeting on November 30, 2017, AkzoNobel will return most of the net income from the sale of special chemicals to shareholders. More details will be announced in due course.
Thereafter, on October 2, AkzoNobel announced that shareholders will receive 5.5 billion euros after completing the sale of specialty chemicals. In addition, there is a € 1 billion prepayment for a special cash dividend distribution paid on December 7, 2017. A total of 6.5 billion euros will be distributed to shareholders, with the vast majority of the 7.5 billion euro net proceeds promised from the separation of the special chemicals business distributed to shareholders. The additional 5.5 billion euros will be distributed through capital repayments and a combined 2 billion euros in equity, a special cash dividend of 1 billion euros and a 2.5 billion euro share buyback.
"This is a clear sign of our commitment and we are committed to creating value for all of our stakeholders as paint and coating companies." Van Di Rui said, "We consulted many shareholders and evaluated various options to determine whether to sell After the chemicals business, return the vast majority of net income in an optimal and timely manner. "
Capital repayment and share consolidation will be approved by shareholders at the EGM held on November 13, 2018. The special cash dividend will be paid shortly after the completion of the capital repayment and share consolidation. Share repurchases will begin after special cash dividends are paid and may be completed in mid-2020. The shares will be cancelled after the repurchase.
The remaining proceeds will be used to repay debt, transformation-related costs, and fixed acquisitions. As of April 19, 2017, AkzoNobel, as a company specializing in paints and coatings, has a common dividend of 1.65 euros per share, and the dividend policy is still "steadily rising." AkzoNobel is committed to maintaining a strong investment grade credit rating.