AkzoNobel announced it no longer intends to acquire Tikkurila, following a competing, higher offer for Tikkurila.
AkzoNobel submitted a proposal in late January to acquire Tikkurila for €31.25 per share and total equity value of around €1.4 billion. At the time, AkzoNobel said the offer represented a premium of 113 percent to Tikkurila’s volume weighted average share price for the undisturbed three-month period ending Dec.17, 2020, and it was 13 percent higher than a previous offer made on Jan. 5, 2021.
The company announced on Feb. 8, 2021, that it no longer intends to pursue this acquisition despite a strong cultural fit.
“We have clear priorities and criteria for capital allocation, including investing for growth, paying dividends, conducting acquisitions, and carrying out share buybacks,” said Thierry Vanlancker, CEO of AkzoNobel. “The intended acquisition of Tikkurila can no longer compete with more attractive opportunities to create superior value for our shareholders and other stakeholders.”
AkzoNobel says it will continue delivering on its capital allocation priorities. The company continues its current €300 million share buyback program and maintains a target leverage ratio of 1-2x net debt/EBITDA.
The post AkzoNobel Backs Away from Acquiring Tikkurila appeared first on American Coatings Association.
from American Coatings Association https://www.paint.org/akzonobel-backs-away-from-acquiring-tikkurila/
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