AkzoNobel to Sell Its Shares in ICI Pakistan
AkzoNobel has reached an agreement to sell its 75.81% shareholding in ICI Pakistan to the Yunus Brothers Group for $152.5 million (€124.4 million). The price is subject to adjustments for cash/debt as at the date competition clearance is obtained and for interest from that date until closing.
The transaction is expected to be completed towards the end of this year, once regulatory approvals have been obtained and the purchaser has completed a legally required tender offer for at least 50 % of the shares in ICI Pakistan held by the other shareholders.
The agreement follows the successfully completed restructuring of AkzoNobel's activities in Pakistan last month, which entailed the demerger of ICI Pakistan's paints and coatings businesses into the new listed company, AkzoNobel Pakistan Limited. The newly formed company is 75.81% owned by AkzoNobel and continues to focus on Decorative Paints, Performance Coatings and Specialty Chemicals.
ICI Pakistan Limited has been a subsidiary of AkzoNobel since 2008, when the company acquired Imperial Chemical Industries. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges. ICI Pakistan's business now comprises polyester fiber, soda ash, life sciences and chemicals.
The Yunus Brothers Group is a leading conglomerate in Pakistan with interest in the cement and textile industries, power and real estate. It had revenues of €775 million in 2011.