AkzoNobel could eye large-scale takeover or series of smaller acquisitions - report (translated)
AkzoNobel [AMS: AKZA] could eye a large acquisition, or a series of smaller ones, De Telegraaf noted in an analysis after the company rejected an approach by PPG Industries (NYSE:PPG) last week.
The previously announced strategic review and separation of AkzoNobel's specialty chemicals division, could yield up to EUR 12 to EUR 14bn, which would provide a sizeable war chest. In addition, AkzoNobel could obtain EUR 7bn in the short term, by issuing up to 20% additional shares and using up its credit lines.
The article cited Exane BNP Paribas analysts, who see a 40% chance that a sale of the Specialty Chemicals division will be used for not one, but a series of acquisitions including a payout to shareholders.
Another option, given a 20% chance by the analysts, is for Akzo to float its Specialty Chemicals division, in which case AkzoNobel would retain a stake in the business, the report noted.
A third option, with a 30% chance of occurring according to the Exane BNP analysis, is a private sale of the division, with proceeds to be used for one large-scale acquisition. In this case, Akzo could use its war chest to acquire US-based Axalta Coatings which is rumoured to be valued at around USD 11bn, the item added.
A successful takeover of AkzoNobel by PPG was given a 10% chance, owing to Akzo's protective structure and earlier rejection of PPG's overtures, according to the Exane BNP analysts, cited in the item.
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