PITTSBURGH, April 5, 2017 - PPG (NYSE:PPG) today reiterated its invitation to AkzoNobel (AKZA.AS: AKZOY) to enter into discussions to explore PPG’s proposal to form a combined company. This follows the previous announcements on March 9, 2017, and March 22, 2017.
PPG continues to believe that a combination of the two companies has a strong strategic rationale and presents a highly compelling and unique opportunity for both AkzoNobel and PPG and their respective stakeholders.
“We made a compelling offer to AkzoNobel that provides its shareholders with a significant premium and the opportunity to benefit from the upside potential of a stronger company that is well positioned for future growth and value creation. Together, we can create a stronger company that will benefit all of AkzoNobel’s stakeholders, including its Netherlands-based employees,” said Michael McGarry, PPG Chairman and CEO.
Although AkzoNobel has declined PPG’s repeated invitations to meet, PPG remains committed to seeking engagement with AkzoNobel. PPG believes AkzoNobel should honor growing requests to engage and fully consider all relevant options to create the most value for all of its stakeholders, and benefit from the multiple months of preparation already completed by PPG.
“The resounding feedback we have received in the Netherlands, the U.K. and the U.S. further validates the merits of combining PPG and AkzoNobel,” McGarry said. “We are now even more convinced that this combination is in the best interests of all stakeholders of AkzoNobel.”
PPG has stated its commitment to address several areas of importance previously identified by AkzoNobel, such as continuing commitments to research and development, honoring existing employment terms of employees and social plans, locating key businesses in Europe and in the Netherlands, maintaining important public-private partnerships, and further strengthening community investments and commitments to sustainability and social responsibility. PPG can provide detailed answers to any specific concerns that AkzoNobel may have, including with respect to antitrust matters where PPG’s antitrust experts have conducted extensive analysis and are confident that there is a clear path forward to complete the transaction.
“We once again invite AkzoNobel to meet with us to learn more about our specific proposals. We are prepared to address all of AkzoNobel’s concerns in a collaborative and substantive manner, and the best approach for AkzoNobel is to engage with PPG in each of these important areas for the benefit of all stakeholders,” McGarry said.
In accordance with Dutch law, PPG confirms its intention to make a public offer for all the issued and outstanding shares of AkzoNobel. A draft offer memorandum is currently expected to be submitted by PPG to the AFM no later than June 1, 2017.
To view the previous announcements related to PPG’s proposal to combine with AkzoNobel, click here. To learn more about PPG, visit www.ppg.com.
This is a public announcement by PPG Industries, Inc. (PPG), pursuant to the provisions of section 7 paragraph 1 sub a of the Decree on Public Takeover Bids (Besluit openbare biedingen Wft) of the Netherlands in connection with a potential voluntary public offer by PPG for all the issued and outstanding ordinary shares in the capital of Akzo Nobel N.V. This announcement is without prejudice to PPG’s right to submit a draft offer memorandum within 12 weeks from announcing its offer in accordance with section 5 paragraph 2 of the Decree. This announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities. Any offer will be made only by means of an offer memorandum. This announcement is not for release, publication or distribution, in whole or in part, in, into or from, directly or indirectly, any other jurisdiction in which such release, publication or distribution would be unlawful.
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