AKZA Akzo Nobel NV

   By Oliver Griffin 
 

Akzo Nobel NV (AKZA.AE) said Tuesday that it will return an additional 5.5 billion euros ($6.4 billion) to shareholders after completing the sale of its specialty chemical business.

The Dutch paint company will return EUR1 billion via a special cash dividend and launched a buyback program to repurchase EUR2.5 billion in shares, it said. Akzo will also return EUR2 billion via capital repayment and share consolidation, the company said.

In March the group said it had agreed to sell its specialty chemicals unit to a consortium led by private-equity giant Carlyle Group LP for EUR10.1 billion.

Chief Executive Thierry Vanlancker said the announcement was a clear sign that Akzo Nobel is delivering on its commitments.

Alongside an earlier special dividend paid in December last year, a total of EUR6.5 billion will have been distributed to shareholders, the company said.

The capital repayment and share consolidation will be subject to shareholder approval at an extraordinary general meeting slated for Nov. 13.

Akzo Nobel said the special dividend will be paid shortly after the capital repayment and share consolidation are completed, with the buyback program following. The buyback is expected to be completed in mid-2020.

The remaining proceeds will be used to repay debt and costs associated with the transformation of the company, as well as for bolt-on acquisitions, Akzo Nobel said.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

October 02, 2018 01:39 ET (05:39 GMT)

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