Akzo Nobel announces it is to conduct €2 billion capital repayment and share consolidation, returning vast majority of net proceeds from sale of its specialty chemicals business, stating it is now “a focused paints and coatings company”.
Akzo Nobel shareholders voted in favour of all resolutions at the company's Extraordinary General Meeting (EGM) last week, following the sale of its speciality chemicals division for €10.1billion to The Carlyle Group and GIC.
The capital repayment and share consolidation, agreed by a majority of shareholders, follows completion of the sale of Akzo’s Specialty Chemicals business.
A special cash dividend of €1billion and share buyback of €2.5billion will be conducted following the capital repayment and share consolidation. This is in addition to €1billion advance proceeds distributed by a special cash dividend paid on December 7, 2017. A total of €6.5billion will have been distributed to shareholders.
With a stronger focus on its decorative paints and coatings operations, Akzo has recently completed acquisitions in Spain, Romania and Malaysia, stepping up its market share in these markets.
Akzo Nobel supervisory board chairman Nils Andersen said: “The approval of our shareholders means we can continue delivering on the commitment to return the vast majority of net proceeds from the separation of the Specialty Chemicals business. Akzo Nobel is now a focused paints and coatings company, well positioned to deliver significant returns to shareholders and create value for all stakeholders.”