Akzo Nobel Sale of 75% Akzo Nobel India stake leads to € 900m net cash proceeds
Unsurprising and in line with earlier announced strategic guidelines, Akzo Nobel announced to have signed an agreement to divest its 75% stake in Akzo Nobel India for net cash proceeds of c. € 900m, with the overall deal valuation roughly in line with current stock market valuation. The EV/EBITDA of the transaction is a very healthy 22x multiple. Akzo will use the proceeds to partly deleverage (€ 500m) while it intends to launch a €400m share buyback program after closing. We expect Akzo to continue to scrutinize its portfolio whilst overall focus is on the coatings businesses. Apart from the strategic portfolio initiatives, Akzo Nobel is working hard on improving efficiency, with overall cost cutting programs aimed at delivering c. € 450m savings. Taking into account the low structural growth and bumpy track record, we maintain our Hold rating and € 65 target price.Akzo Nobel N.V. is a holding company. Through its subsidiaries, Co. is engaged in the production and marketing of paints, coatings and specialty chemicals. Co. has three segments: Decorative Paints, which supplies products for the professional and do-it-yourself markets, including paints, lacquers and varnishes, as well as products for surface preparation; Performance Coatings, which is divided into the following businesses: Automotive and Aerospace Coatings, Industrial Coatings, Marine and Protective Coatings, and Powder Coatings; and Specialty Chemicals, which are used in products such as ice cream, soups, disinfectants, plastics, soaps, detergents, cosmetics, paper and asphalt.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.