AkzoNobel sell ICI Pakistan, will retain paint business

AkzoNobel to sell ICI Pakistan, will retain paint business

3:25 PM, 10th June 2011
AkzoNobel to sell ICI Pakistan, will retain paint business
AkzoNobel headquarters.

·      AkzoNobel to seek agreement to split ICI Pakistan into two listed entities: AkzoNobel Pakistan Limited (comprising the Paints business) and ICI Pakistan Limited (comprising all other businesses of ICI Pakistan)

·      Under the proposal, both companies will, following the split, be listed on the Karachi, Lahore and Islamabad Stock Exchanges

·      AkzoNobel would retain a 75.8 per cent shareholding in AkzoNobel Pakistan Limited and would seek appropriate buyers for its shareholding in ICI Pakistan

·      The company sees strong future for paints in Pakistan 

 

AMSTERDAM, THE NETHERLANDS: Akzo Nobel N V intends to separate the organization’s paints and chemicals businesses, ICI Pakistan Limited. Under the terms of the proposal, AkzoNobel would retain direct majority control of the paints business by separating it into a new legal entity (AkzoNobel Pakistan Limited) through a de-merger process approved by the Pakistani courts. Subsequently, AkzoNobel would dispose of its entire shareholding in the remainder of ICI Pakistan.

 

The entire ICI Pakistan business has been a subsidiary of AkzoNobel since 2008, when the company acquired Imperial Chemical Industries PLC. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges, with AkzoNobel currently holding 75.8 per cent of the total shares. Focusing primarily on the Pakistan market, ICI Pakistan’s main businesses are polyester fiber, soda ash, life sciences, chemicals and decorative paints.

 

AkzoNobel feels that ICI Pakistan’s paints business would be of clear commercial benefit for the company. Accordingly, AkzoNobel intends to seek a new owner formally once the paints business is separated. Initially, two companies would be created, listed and AkzoNobel would own 75.8 percent of each. The business, assets and liabilities of the paint business would be called AkzoNobel Pakistan Limited. ICI Pakistan would comprise all of the remaining businesses, assets and liabilities. AkzoNobel recognizes Pakistan as an important market for coatings and paints business.

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