×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: EU | Netherlands | Earns | AkzoNobel

AkzoNobel Plans to Spin off Specialty Chemicals Unit

Wednesday, 19 April 2017 05:02 AM EDT

THE HAGUE, Netherlands (AP) — Industrial paints and chemicals company AkzoNobel said Wednesday it plans to spin off its Specialty Chemicals unit within 12 months to boost growth and reward its shareholders.

The shake-up at the Dutch multinational comes after it recently rejected two unsolicited takeover bids by American rival PPG Industries.

In a move aimed at keeping shareholders happy and loyal, AkzoNobel said it will boost its dividend by 50 percent and return the "vast majority of net proceeds" from the separation of its Specialty Chemicals unit to shareholders.

"Now is the right time to create two focused, high-performing businesses," CEO Ton Buechner said.

Last month, AkzoNobel rejected offers from PPG worth 21 billion euros and 22.4 billion euros, saying they significantly undervalued the company.

Buechner said the plan to split AkzoNobel into two separate companies will generate "significant shareholder value in the short, medium and long term. It will be delivered at pace, with a clear timeline and is in the best interest of all stakeholders."

The company said the separation of Specialty Chemicals, either selling it off or giving it a separate listing, would likely create savings of 50 million euros ($53.6 million)

AkzoNobel said first-quarter net profit was stable at 240 million euros ($257 million) as revenue rose by seven percent to 3.66 billion euros ($3.9 billion).

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Europe
Industrial paints and chemicals company AkzoNobel said Wednesday it plans to spin off its Specialty Chemicals unit within 12 months to boost growth and reward its shareholders.The shake-up at the Dutch multinational comes after it recently rejected two unsolicited takeover...
EU,Netherlands,Earns,AkzoNobel
220
2017-02-19
Wednesday, 19 April 2017 05:02 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved