PPG and Tikkurila agreed on a revised takeover offer

The offer, which began on January 15, continues with an increase in the purchase price of a major shareholder's commitment to sell a stake in PPG to Pittsburgh, February 5, 2021 - PPG (NYSE: PPG) and Tikkurila (NASDAQ OMX: TIK1V) today announced that the two companies have agreed to a revised version of the previously announced final merger agreement to make pPG's full-cash acquisition of all issued tikkurila shares.
under the revised agreement, Tikkurila shareholders will receive cash of 34.00 euros per share from the shares they sell, for a total transaction value of about 1.52 billion euros, including debt and cash commitments.
Tykkurila received a competitive offer from AkzoNobel (Amsterdam Euronoust: AKZA) on January 28, 2021, prompting PPG to revise the offer.
Tykkurila confirmed that it had held discussions with AkzoNobel as early as the fourth quarter of 2020, prior to PPG's proposed acquisition of Tikkurila in December 2020.
some of Tikkurila's major shareholders, which hold a total of about 29.34 per cent of PPG's revised offer, have made an unconditional commitment to sell their shares to PPG with regulatory approval.
PPG's revised offer sets out the terms and conditions for the increase in the offer per share and other equity expansions, including: . . an 8.8% premium to AkzoNobel's competitive offer, maximizing the value of Tikkurila's all shareholders; The transaction is expected to be completed as early as March 2021 or the beginning of the second quarter; The regulatory approval process is in keeping with the expected acquisition completion time, which is much faster than AkzoNobel's proposed trading schedule, making the deal expected to close before Tikkurila's second and third quarter peak seasons; In order to increase the certainty of the transaction, reduce the threshold for acceptance of the offer from 90% to 66.7% and provide additional regulatory commitments in some areas; employees and stakeholders to provide a clearer and better future and to ensure that certain tikkurila businesses are avoided due to disruption or disruption of operations due to the need for divestitures, uncertainty in the regulatory process, and the possible extension of acquisition completion times in AkzoNobel's acquisition proposal.
Based on consideration of price, certainty, timing and stakeholders, tikkurila's board has determined that PPG's revised offer is superior to AkzoNobel's competitive offer, so Tikkurila's board unanimously recommended that Tikkurila shareholders accept PPG's revised offer.
"From a strategic and shareholder value creation perspective, the acquisition of Tikkurila remains an attractive opportunity for PPG."
our revised offer is based on our in-depth analysis of potential transaction synergies and our confidence in the value that a merger of the two companies will create.
McGarry, chairman and chief executive officer of PPG, said, "We appreciate tikkurila's board's assessment of integrity responsibilities and fairness in the context of the two companies' takeover offers."
they came to the appropriate conclusion that PPG's revised offer was clearly more advantageous, faster to complete, simpler to execute, more certain, and in the best interests of Tikkurila and all its stakeholders, especially employees.
look forward to combining Tikkurila and PPG into a company early this year for the benefit of our customers, employees and community.
" offer for all shares has been made since January 15 and is expected to be completed on March 15 unless extended due to PPG.
PPG expects the deal to close as early as March 2021 or early Q2, depending on customary closing conditions.
Tykkurila has announced a 3 per cent increase in revenues to about 582 million euros by 2020.