AkzoNobel Pakistan Ltd, the maker of the famous brand Dulux, has decided to sell off its special chemical unit at a price of Rs. 33.5 million as part of the company strategy to focus only on its profitable core business.
According to the stock filing, the board of the directors at AkzoNobel Pakistan Ltd approved the sale, transfer and conveyance of the Specialty Chemicals Business of the company as a growing concern to AkzoNobel Chemicals, which is its whole owned subsidiary.
The company did not disclose the acquirers of the chemical unit however it set the price and the deadline till 2018-end – the period during which the transfer and sale deal will be sealed by the company.
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During this period, the inventory of Specialty Chemicals products held by the company will be sold out to AkzoNobel Chemicals, the notification said.
The Specialty Chemicals produces Ethylene & Sulfur Derivatives and Surface Chemistry portfolios and etc.
The execution will be carried out by Saad Mahmood Rashid, who replaced Jehanzeb Khan as CEO of the company last year, though the decision of the board to sell-off its chemical unit was made a month before of this transition. The company made a profit growth of 3% in three quarters of 2017 translating into a value of Rs. 390 million.
AzkoNobel Operations in Pakistan
The AkzoNobel Group acquired ICI in 2008.
In 2012, AkzoNobel reached an agreement to sell its 75.81 percent shareholding in ICI Pakistan Limited to the Yunus Brothers Group for $152.5 million (Rs. 14.4 billion).
Through a scheme of demerger, the Paints Business of ICI was separated into an independent legal entity and the company is now operating as AkzoNobel Pakistan.
The management of the company was optimistic about the expansion of its core business (Paint Production Unit) due to the rise in construction activities and production of automobiles.
