AkzoNobel will seek approval from the board and shareholders of ICI Pakistan to separate the organization's paints and chemicals businesses.
AkzoNobel would retain direct majority control of the paints business by separating it into a new legal entity—AkzoNobel Pakistan Limited—through a de-merger process approved by the Pakistani courts. Subsequently, AkzoNobel would dispose of its entire shareholding in the remainder of ICI Pakistan.
The entire ICI Pakistan business has been a subsidiary of AkzoNobel since 2008, when the company acquired Imperial Chemical Industries. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges, with AkzoNobel currently holding 75.8 percent of the total shares. Focusing primarily on the Pakistan market, ICI Pakistan's main businesses are polyester fiber, soda ash, life sciences, chemicals and decorative paints. In 2010, ICI Pakistan's revenue amounted to €305 million.
AkzoNobel's intention is to seek a new owner for its shareholding in ICI Pakistan through a formal sale process once the paints business is separated.
AkzoNobel plans to split ICI Pakistan
Upon approval, AkzoNobel Pakistan Ltd. will be created.
Published May 5, 2011
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