Pakistan’s largest cement manufacturer will be the next owner of AkzoNobel’s chemicals business in that country.
The Dutch coatings giant announced Monday (July 30) that it had reached agreement to sell its remaining 75.81 percent share of ICI Pakistan Limited to the Yunus Brothers Group for $152.5 million (€124.4 million). The price represents a premium of 30 percent on the market price when the local stock exchange closed July 27.
Yunus Brothers Group
|Lucky Cement, owned by the Yunus Brothers Group, is Pakistan's largest concrete manufacturer and exporter.|
Established in 1962, the Yunus Brothers Group is a leading conglomerate in Pakistan with interest in the cement and textile industries, power and real estate. It had revenues of €775 million (about $950 million US) in 2011.
The deal will complete AkzoNobel’s reorganization of its businesses in Pakistan.
AkzoNobel announced in May 2011 that it would be splitting up the $436.1 million ICI Pakistan portfolio it acquired in 2008 from Imperial Chemical Industries (ICI) PLC, in order to concentrate on coatings.
Under the plan, AkzoNobel would keep and reconstitute the paints business as AkzoNobel Pakistan Limited, focusing on decorative paints, performance coatings and specialty chemicals. The rest of the ICI Pakistan business (comprising polyester fiber, soda ash, life sciences and chemicals) would be parceled off and sold.
The company completed the first stage of the restructuring in June 2012 with the businesses’ breakup.
"We are pleased to have reached an agreement to sell our shares in ICI Pakistan," said Keith Nichols, CFO of AkzoNobel. "We are convinced that the Yunus Brothers Group is better suited to achieving its obvious potential, while the deal includes conditions to safeguard the terms and conditions of our dedicated employees there."
Added Sohail Tabba, Group Director at Yunus Brothers Group: "We are delighted with the agreement to acquire ICI Pakistan Limited. The Yunus Brothers Group is keen to further develop the business of the company, working closely with the existing management and employees."
AkzoNobel is the world’s largest paint and coatings company and a major producer of specialty chemicals.
The transaction is expected to be completed toward the end of this year, pending regulatory approvals.