HEERLEN, The Netherlands - Royal DSM N.V., the global life sciences and materials sciences company headquartered in the Netherlands, announced that it intends to acquire a 51-percent stake in AGI Corp. of Taiwan (AGI) through a subscription for newly to-be-issued shares combined with a public tender offer, subject to AGI corporate approvals and to regulatory and other customary conditions, approvals and notifications.
AGI offers a broad range of environmentally friendly UV-curable resins and other products. These products are used in coatings for paper, wood, plastic and graphic arts applications. AGI reported net sales in 2009 of NTD 3,561 million (approximately EUR 90 million). AGI is listed on the emerging companies board of the GreTai Securities Market in Taipei. This intended transaction is consistent with DSM’s strategic focus on high-growth economies, sustainability, innovation and partnerships.
The intended acquisition will be for a 51 percent stake for about EUR 48 million and will consist of a mix of newly to-be-issued shares and purchases from existing shareholders by way of a public tender offer.
It is currently anticipated that the public tender offer will be launched through a wholly-owned DSM subsidiary towards the end of the first quarter of 2011 following AGI corporate approvals for the private placement of new shares. The tender offer and the private placement are mutually conditional upon each other.
A group of shareholders who together own approximately 16.4 percent of the current outstanding AGI shares have entered into agreements under which they have agreed to tender their shares to DSM. The intended transaction is expected to close in the second quarter of 2011. However, the transaction process may be terminated if not all of the approvals and consents are obtained, and conditions met within six months.
DSM to Acquire 51 Percent of AGI Corp.
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