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Akzonobel to restructure and split ICI Pakistan.

Following a strategic review of its businesses, AkzoNobel is seeking to separate ICI Pakistan into two legal entities: AkzoNobel Pakistan Limited, which will be comprised of the company's paints business, and ICI Pakistan Limited, to be made up of all other businesses of ICI Pakistan. AkzoNobel will seek agreement from the board and shareholders of ICI Pakistan Limited to separate the businesses.

Under the terms of the proposal, the company would retain direct majority control of the paints business by separating it into a new legal entity called AkzoNobel Pakistan Limited through a de-merger process approved by the shareholders of ICI Pakistan and sanctioned by the Pakistani courts. AkzoNobel would own 75.8% of both AkzoNobel Pakistan Limited and ICI Pakistan. Subsequently, AkzoNobel plans to dispose of its entire shareholding in the remainder of ICI Pakistan.

Although it believes that ICI Pakistan's paints business is of clear commercial benefit for the company, AkzoNobel maintains that transferring ownership of ICI Pakistan's other businesses would provide the best opportunity for those businesses to realize their full potential.

ICI Pakistan has been a subsidiary of AkzoNobel since 2008, when the company acquired Imperial Chemical Industries PLC. It is listed on the Karachi, Lahore, and Islamabad stock exchanges. Focusing primarily on the Pakistan market, ICI Pakistan's main businesses are polyester fiber, soda ash, life sciences, chemicals, and decorative paints. In 2010, ICI Pakistan's revenue amounted to [euro]305 million.
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Title Annotation:Business & Industry
Publication:JCT CoatingsTech
Date:Jun 1, 2011
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