MOSCOW (MRC) -- Akzo Nobel N.V.has announced shareholders will receive EUR5.5 billion, following completion of the sale of the Specialty Chemicals business, said the company.
This is in addition to EUR1 billion advance proceeds distributed by a special cash dividend paid on December 7, 2017.
A total of EUR6.5 billion will have been distributed to shareholders, delivering on a commitment to return the vast majority of EUR7.5 billion net proceeds, from the separation of the Specialty Chemicals business.
The additional EUR5.5 billion proceeds will be distributed using a capital repayment and share consolidation of EUR2 billion, special cash dividend of EUR1 billion, and share buyback of EUR2.5 billion.
Thierry Vanlancker, CEO of AkzoNobel, said: "This is a clear sign we are delivering on our commitments and focused on creating value for all our stakeholders as a paints and coatings company.
"We consulted many shareholders and evaluated various options to determine an optimal and timely way to return the vast majority of net proceeds following the sale of the Specialty Chemicals business."
The capital repayment and share consolidation will be subject to shareholder approval at an Extraordinary General Meeting (EGM), to be held on November 13, 2018. The special cash dividend will be paid shortly after the capital repayment and share consolidation has been completed. The share buyback will commence following payment of the special cash dividend and likely be completed during the middle of 2020. Shares will be canceled following repurchase.
Remaining proceeds will be used for the repayment of debt, costs associated with the transformation, and bolt-on acquisitions. The ordinary dividend relevant for AkzoNobel as a focused paints and coatings company is €1.65 per share, as announced on April 19, 2017, and the dividend policy remains ‘stable to rising’. AkzoNobel is committed to retain a strong investment grade credit rating.