AkzoNobel sells ICI Pakistan
Exit from commodities continues
AkzoNobel has agreed to sell its 75.81% stake in its newly demerged ICI Pakistan subsidiary to the Yunus Brothers Group for €124.4 million, a local conglomerate active in the cement and textile industries, power and real estate subject. This follows on from the recent establishment of AzkoNobel Pakistan as a separate business.
The company had first established ICI Pakistan as a subsidiary in 2008, when it acquired ICI. It is listed on the three main Pakistani stock exchanges and is active in polyester fibres, soda ash, life sciences and chemicals. AkzoNobel Pakistan, which is headed by Jehanzeb Khan, is focused on the company’s three core areas of decorative paints, performance coatings and speciality chemicals.
The deal continues AkzoNobel’s focus in these areas. “Pakistan offers clear opportunities for the future and we are committed to realising our growth ambitions through these more strategically focused activities," explained Leif Darner, Executive Committee member responsible for the Middle East, at the time of the demerger in May.
The deal is subject to adjustments for cash and debt on the date competition clearance is obtained and for interest from that date until closing. This is expected to take place towards the end of the year, once regulatory approvals have been obtained and Yunus Brothers has completed a legally required tender offer for at least 50% of those shares in ICI Pakistan held by the other shareholders.