Akzo Nobel Gets Extension in ICI Takeover
Akzo, the world's largest maker of industrial coatings, first proposed a bid at 600 pence a share in June, and then partnered with Henkel, the maker of Persil detergents in Germany, for its last two proposals.
09/08/07 Dutch chemicals group Akzo Nobel has won a deadline extension for its 8 billion pounds ($16.3 billion) bid for Britain's Imperial Chemical Industries to next Monday. The Takeover Panel involved in the deal has extended the date by which Akzo Nobel must either announce a firm intention to make an offer for ICI under Rule 2.5 of the Takeover Code, or announce that it does not intend to make an offer for ICI, to 10am GMT on Monday August 13, 2007.
Akzo Nobel confirms that discussions between the parties regarding pre-conditions to an offer and completion of due diligence continue.
Akzo Nobel also confirms that its indicative proposal remains 670p in cash per ICI share. In addition, ICI shareholders would receive a second interim dividend of 5p per share, provided that if the completion date of any offer falls prior to December 31, 2007, such second interim dividend shall be paid pro rata by reference to where the completion date falls between July 1, and December 31, 2007.
As required by the Takeover Code, Akzo Nobel confirms that this announcement is being made with the agreement and approval of ICI.
There can be no certainty that Akzo Nobel's indicative proposal will result in any offer or transaction, the company said in a statement.
Akzo, the world's largest maker of industrial coatings, first proposed a bid at 600 pence a share in June, and then partnered with Henkel, the maker of Persil detergents in Germany, for its last two proposals.
Earlier this week, Henkel has reached an agreement with Akzo Nobel on the value of a back-to-back transaction. The transaction envisages that Henkel will acquire the adhesives and electronic materials businesses of National Starch, a subsidiary company of ICI. The agreed transaction value is 2.7 billion GBP (close to 4 billion euros). The signing of the back-to-back agreement is still subject to the approval of the Henkel Shareholders' Committee. The transaction is conditional on the successful completion of the takeover of ICI by Akzo Nobel.
"With this agreement, we have taken a major step towards the successful conclusion of the planned acquisition. We consider the agreed transaction value to be a fair price, since the new businesses offer exceptional complementarity with our portfolio," says Ulrich Lehner, Chairman of the Management Board of Henkel. "Moreover, we expect significant synergies and a substantial improvement of our growth and profit prospects to arise from the planned combination."
