Akzo Nobel announced an agreement to sell its 75.81% shareholding in ICI Pakistan Limited to Yunus Brothers Group for $ 152.5m, representing a premium of 30% on the closing share price of last Friday. The price is still subject to adjustments for cash/debt balance changes until closing.
Akzo Nobel expects the transaction to be completed towards the end of the year.
ICI Pakistan is active in soda ash, polyester fibres and other chemicals
The announcement is no surprise, as Akzo Nobel had previously extensively restructured its Pakistan operations which included the demerger of the coating businesses, and had announced its ambition to divest its ICI Pakistan Limited shareholding. We view the news as relatively small, albeit positive.