Akzo Nobel N.V. January 28 submitted a binding proposal to the Board of Directors of Tikkurila, having completed its due diligence on the company, as it was informed by Akzo.
The proposal relates to a tender offer for all the issued and outstanding shares of Tikkurila at an offer price of €31.25 per share, representing a total equity value of around €1.4 billion.
On January 18, 2021, AkzoNobel announced it had made a comprehensive non-binding proposal to acquire Tikkurila and invited the Board of Directors of Tikkurila to enter into negotiation.
Conducting customary due diligence has confirmed the AkzoNobel view that the combination would deliver substantial value creation for shareholders and also create significant opportunities for future growth.
If the process advances quickly, an offer could be announced in February and AkzoNobel would envisage the offer period to begin as soon as possible in March. The transaction would be expected to be completed during 2021.
The binding proposal is conditional on AkzoNobel and Tikkurila entering into a combination agreement pursuant to which Tikkurila BOD and shareholders approve the transaction and obtaining an irrevocable undertaking from Oras Invest Oy to accept AkzoNobel's tender offer.
AkzoNobel would reserve the right, at its sole discretion, to waive any of the conditions for completion of the potential offer.
Shareholders are advised that there is no certainty that the binding proposal will eventually lead to a final agreement between AkzoNobel and Tikkurila or the making of an offer to Tikkurila shareholders.
The current combination agreement entered into by Tikkurila includes procedures allowing the offeror to negotiate should the Board of Directors of Tikkurila contemplate effecting a change of its recommendation.
AkzoNobel is being advised by HSBC and J.P. Morgan as financial advisers and De Brauw Blackstone Westbroek and Roschier, Attorneys Ltd. as legal advisers.
