Akzo Nobel receives EUR 110 million offer for Coating Resins business
Akzo Nobel has received an offer of EUR 110 million from Nuplex Industries Limited for its coating resins business, free of cash and debt. Coating Resins sales amounted to EUR 256 million in 2003, while EBITDA amounted to EUR 18 million before corporate charges. Akzo Nobel announced its intention to sell this business in September 2003 as part of a divestment program aimed at strengthening the Company's balance sheet and creating more financial room to maneuver.
"The transaction would complete a major round of divestments in Chemicals which will, at closing, have generated some EUR 1 billion. The proceeds will be used to reduce debt and to boost the growth areas of our portfolio that meet our financial criteria," said Hans Wijers, Chairman of Akzo Nobel's Board of Management.
Closing of the transaction is expected to be in the final quarter of 2004. The divestment covers the entire business including shareholdings in two consolidated joint ventures in Malaysia and Indonesia and a non-consolidated joint venture in Thailand. All employees - some 850, of which about a third are located in the Netherlands - will transfer with the business. Other key locations are in the United Kingdom and the United States. Employee representative bodies and unions have been informed and consultation procedures will commence shortly, where applicable. Regulatory approvals will be sought as and where appropriate.
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