Arnhem, the Netherlands, September 7, 2006 — Akzo Nobel has moved a step closer to separating into two independent companies after shareholders approved the company’s proposal at an Extraordinary General Meeting (EGM).
The EGM was called to ask shareholders to give their approval to the proposed separation, which will see the company separate into Akzo Nobel—active in coatings and chemicals— and Organon BioSciences, active in pharmaceuticals.
Akzo Nobel intends to divest a minority stake in Organon BioSciences preferably through a listing of approximately 20 to 30 percent of Organon BioSciences shares on Euronext Amsterdam, followed by a full separation within two to three years. Now that shareholder approval has been obtained, the company will continue with the separation process.
“I am pleased that the company’s shareholders have given their approval for Akzo Nobel to move forward with its plans and we can now make further progress towards achieving our goal of creating two strong, independent companies,” said Akzo Nobel CEO Hans Wijers. “The separation process is on track and, while the final timing is dependent on several factors, we expect to have Organon BioSciences listed on Euronext Amsterdam by early 2007.”
The structure and final timing of the separation will depend on market conditions, as well as on developments at Organon BioSciences, including its product pipeline.