12 March 2007 09:36 [Source: ICIS news]
Correction: In the ICIS news story headlined "Akzo Nobel to sell Organon for €11bn, drops IPO" dated 12 March 2007, please read in the first paragraph …€11bn ($14.5bn)… instead of …€11m ($14.5m). A corrected story follows.
SINGAPORE (ICIS news)--Dutch life sciences, coatings and chemicals group Akzo Nobel on Monday said it planned to sell Organon BioSciences (OBS) to US pharmaceutical group Schering-Plough for €11bn ($14.5bn) and dropped plans to issue an initial public offering (IPO).
Akzo Nobel earlier said it will take 20-30% of OBS public at the end of March.
The news gave Akzo Nobel’s shares a boost as they rose 17.58% to €54.57 on Monday morning in Amsterdam.
"While an independent future also offered potentially exciting possibilities, the partnership with Schering-Plough – one of the world’s leading pharmaceutical companies – will give more scope to develop the unique capabilities of OBS," Akzo Nobel’s chief executive Hans Wijers said in a statement.
Following the completion of the sale in the second half of the year, Akzo Nobel will use the proceeds to grow its coatings and chemicals businesses, and to reduce its pension and other liabilities.
In addition, the company will embark on a share buy-back programme of up to 10% of issued share capital, amounting to about €1.3bn, based on Friday’s closing share price at €46.41.
After the acquisition, Organon’s research and manufacturing facility in Oss, the Netherlands, will be the centre of Schering-Plough’s global gynaecology and fertility activities, while its neuroscience research will continue in Newhouse, Scotland.
Organon raked in revenues of €3.7bn in 2006.
($1 = €0.76)
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