AkzoNobel, Elliott reach agreement, will suspend litigation for three months
The agreement includes alignment on the AkzoNobel strategy to fully separate specialty chemicals. AkzoNobel and Elliott have also agreed, subject to the terms of a standstill agreement, to seek to suspend all ongoing litigation for at least three months.
AkzoNobel announced that it has reached an agreement with affiliates of Elliott Advisors (UK) Limited (collectively ‘Elliott’), following recent constructive dialogue, with the aim of normalising the relationship with its shareholders.
The agreement includes alignment on the AkzoNobel strategy to fully separate specialty chemicals. In addition, Elliott will support the appointment of Thierry Vanlancker as a member of the board of management of AkzoNobel at the upcoming extraordinary general meeting on 8 September 2017.
AkzoNobel and Elliott have also agreed, subject to the terms of a standstill agreement, to seek to suspend all ongoing litigation for at least three months.
AkzoNobel announced two new nominations to its supervisory board. Elliott supported their appointment.
Further, AkzoNobel intends to nominate a third supervisory board member, which will be done in consultation with the company’s major shareholders, including Elliott.
Antony Burgmans, chairman, supervisory board, AkzoNobel, commented: “I am pleased our recent constructive discussions with Elliott improved understanding between both parties. AkzoNobel remains focused on creating two world-class, high-performing businesses; specialty chemicals, and paints and coatings. We look forward to a continued constructive relationship focused on creating value for all shareholders and other stakeholders. This agreement is fully in line with our ongoing programme to strengthen and maintain a constructive dialogue with all our shareholders. We look forward to a successful extraordinary general meeting on September 8."
Gordon Singer, CEO, Elliott Advisors (UK) Limited, added: “Elliott is pleased to have entered into today’s standstill agreement with AkzoNobel. We believe AkzoNobel will benefit from the addition of the supervisory board nominees. Today’s agreement marks an important next step in positioning AkzoNobel for success and enabling the company to deliver compelling value to all its stakeholders. As shareholders, we look forward to building upon the recent constructive dialogue with the company.”
This agreement follows a wide-ranging set of measures previously outlined by AkzoNobel on 25 July 2017 designed to strengthen and maintain a constructive dialogue with its shareholders.