Press Release on Akzo Nobel

Akzo Nobel – InGovern Recommends Voting Against Amalgamation of Unlisted Subsidiaries

Bangalore, India – February 2, 2012, 1700 hrs IST: InGovern Research Services announces the release of Vote Recommendations for the forthcoming Akzo Nobel Court Convened Meeting of shareholders on February 7th.


InGovern recommends institutional investors vote AGAINST the Amalgamation of Akzo Nobel Car Refinishes India Pvt. Ltd., Akzo Nobel Chemicals (India) Ltd. and Akzo Nobel Coatings India Pvt. Ltd. with Akzo Nobel India Ltd.


As a consequence of the amalgamation, promoters will increase their stake from 56% to 66%. Institutional investors – ICICI Prudential Life, LIC, New India Assurance, Oriental Insurance, GIC, UTI, Bajaj Allianz, SBI Mutual, among others – will see their shareholding reduce from the current 20% to 17%.


Mr. Shriram Subramanian, MD of InGovern comments: “Given the sketchy disclosures made by the company, the nebulous valuations presented to investors, the one-off writeoffs and unsecured loans, and the dis-proportionate dilution of public shareholders, we recommend shareholders vote AGAINST the amalgamation.”