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Arnhem, the Netherlands, August 6, 2007 - Akzo Nobel NV ("Akzo Nobel") confirms that it has made a further indicative proposal to the Board of Imperial Chemical Industries PLC ("ICI") under which Akzo Nobel would acquire ICI for 670p per share in cash.
In addition, ICI shareholders would receive a second interim dividend of up to 5p per share paid pro rata by reference to where the completion date of the proposed offer falls between
July 1, 2007 and December 31, 2007.
July 1, 2007 and December 31, 2007.
Akzo Nobel was able to make this increased proposal after further discussions with both ICI and Henkel KGaA ("Henkel").
As announced on 30 July 2007, Akzo Nobel has entered into an exclusive arrangement with Henkel for the sale, following completion of its proposed offer, of ICI's Adhesives and Electronic Materials businesses. The consideration payable under this arrangement is £2.7 billion (calculated on a cash and debt free basis).
Akzo Nobel and Henkel have negotiated a back to back agreement relating to this proposed sale which, subject to the approval of Henkel's Shareholders' Committee, they would intend to execute immediately prior to the formal announcement of an offer by Akzo Nobel for ICI. The exclusivity agreement with Henkel enables both Akzo Nobel and Henkel to each focus on the businesses that offer them most synergies thereby meeting their respective stated strategic and financial objectives. It would also allow Akzo Nobel to return further cash to its shareholders.
The Board of ICI has agreed that Akzo Nobel can undertake certain limited due diligence.
There can be no certainty that Akzo Nobel's further indicative proposal will result in any offer or transaction. A further announcement will be made when appropriate.
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Note to editors
Akzo Nobel is a Fortune Global 500 company and is listed on both the Euronext Amsterdam and NASDAQ stock exchanges. It is also included on the Dow Jones Sustainability Indexes and FTSE4Good Index. Based in the Netherlands, we are a multicultural organization serving customers throughout the world with coatings, chemicals and human and animal healthcare products. We employ around 62,000 people and conduct our activities in these four segments, with operating subsidiaries in more than 80 countries. Consolidated revenues for 2006 totaled EUR 13.7 billion. The financial results for the third quarter will be published on October, 23, 2007.
Internet: www.akzonobel.com
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Akzo Nobel nv
Corporate Media Relations, tel. +31 26 366 43 43
Contact: Tim van der Zanden
