Akzo Nobel N.V. is seeking agreements from the board and shareholders of its subsidiary ICI Pakistan Ltd. to split it into two companies – AkzoNobel Pakistan Ltd. and ICI Pakistan Ltd.
AkzoNobel Paki…
Akzo Nobel N.V. is seeking agreements from the board and shareholders of its subsidiary ICI Pakistan Ltd. to split it into two companies – AkzoNobel Pakistan Ltd. and ICI Pakistan Ltd. AkzoNobel Pakistan will comprise ICI“s paints businesses while ICI will keep all other operations. Dutch AkzoNobel currently holds 75.8% of ICI Pakistan, which is listed on the Karachi, Lahore and Islamabad Stock Exchanges. ICI Pakistan, whose main businesses are polyester fiber, soda ash, life sciences, chemicals and decorative paints, generated revenues of EUR 305 million in 2010. Under the terms of the de-merger proposal, AkzoNobel will maintain direct majority control of the paints business while disposing its entire shareholding in the remainder of ICI. AkzoNobel said it had been conducting a strategic review of its businesses for the last few months and found that ICI“s paints business would be a clear commercial benefit. The company also believes that a new owner would provide best growth opportunities for ICI“s activities apart from paints. These changes will be carried out in two phases, with the initial creation of two companies through a de-merger process. Both would be listed and AkzoNobel would own 75.8% of each. The company would then seek a new owner for its shareholding in ICI through a formal sale process.