PPG Extends Tender Offer Period for Tikkurila

Rhea-AI Summary

PPG (NYSE:PPG) has extended the tender offer period for all shares of Tikkurila Oyj (NASDAQ OMX:TIK1V) to May 11, 2021, initially set to expire on April 14, 2021. The offer has received approval from the European Commission and Finnish authorities, while approval from Kazakhstan has also been granted. The tender offer's completion is contingent on pending regulatory approval from the Federal Antimonopoly Service of Russia, anticipated within the extended period. PPG expects to close the acquisition shortly after the new deadline.

Positive

• European Commission and Finnish Ministry granted approval for the tender offer.
• Acquisition approved by Kazakhstan's competition authority enhances certainty of completion.

Negative

• Pending approval from the Federal Antimonopoly Service of Russia could delay acquisition.

PPG (NYSE:PPG) today announced that it is extending the tender offer period for all issued and outstanding shares of Tikkurila Oyj (NASDAQ OMX:TIK1V) to May 11, 2021. The tender offer period, which commenced on January 15, 2021, was most recently scheduled to expire on April 14, 2021.

As previously announced, the European Commission and the Ministry of Economic Affairs and Employment of Finland each have granted approval of the tender offer. The European Commission’s merger control approval applies without conditions across the European Union, including Poland. In addition, the Agency for Protection and Development of Competition of the Republic of Kazakhstan has now granted approval of PPG’s acquisition of Tikkurila.

The completion of the tender offer remains subject to the receipt of regulatory approval from the Federal Antimonopoly Service of Russia, which PPG anticipates receiving within this extended period, and to additional customary conditions to completion, including the valid tender of shares representing, together with shares otherwise held by PPG and its subsidiaries, more than 66.7% of the outstanding shares of Tikkurila.

PPG will provide additional updates on or shortly after the extended tender offer period expires on May 11, 2021, and expects to close the acquisition shortly thereafter.

Additional details about the extension of the tender offer are contained in the attached Nasdaq Helsinki stock exchange release.

PPG: WE PROTECT AND BEAUTIFY THE WORLD™

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 135 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $13.8 billion in 2020. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

Tikkurila:

Tikkurila was established in 1862, and is headquartered in Vantaa, Finland. Tikkurila operates in eleven countries and its 2,700 dedicated professionals share the joy of building a vivid future through surfaces that make a difference. The company is a leading producer and distributor of decorative paint and coatings with more than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. Its premium brands include Tikkurila, ALCRO, and Beckers. In addition, Tikkurila’s industrial paint business participates in the wood and protective coatings end-use segments, among others. The company employs approximately 2,700 people globally and reported sales of approximately EUR 582 million in 2020.

Forward-Looking Statements

The forward-looking statements contained herein include statements relating to the timing of and expected benefits of the Tikkurila acquisition. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including the satisfaction of the conditions of the acquisition and other risks related to completion of the acquisition and actions related thereto; the parties’ ability to complete the acquisition on the anticipated terms and schedule, including the ability to obtain regulatory approvals; the ability of PPG to achieve the expected benefits of the acquisition; and the other risks and uncertainties discussed in PPG’s periodic reports on Form 10-K and Form 10-Q and its current reports on Form 8-K filed with the Securities and Exchange Commission.

We protect and beautify the world is a trademark and the PPG Logo is a registered trademark of PPG Industries Ohio, Inc.

Nasdaq Helsinki Oy
Announcement from the exchange

PPG Industries, Inc. receives the approval of the competition authority of Kazakhstan for its public cash tender offer for all the shares in Tikkurila Oyj; PPG Industries, Inc. extends the offer period PPG INDUSTRIES, INC. 14

PPG Industries, Inc. receives the approval of the competition authority of Kazakhstan for its public cash tender offer for all the shares in Tikkurila Oyj; PPG Industries, Inc. extends the offer period

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH THE TENDER OFFER WOULD BE PROHIBITED BY APPLICABLE LAW.

PPG Industries, Inc. (“PPG” or the “Offeror”), a corporation incorporated under the laws of Pennsylvania, and Tikkurila Oyj (“Tikkurila” or the “Company”) announced on 18 December 2020 entry into a combination agreement, which was amended on 5 January 2021 and on 4 February 2021, pursuant to which the Offeror is making a voluntary recommended public cash tender offer for all the issued and outstanding shares in the Company (the “Shares”), that are not held by the Company or any of its subsidiaries (the “Tender Offer”). The offer period under the Tender Offer commenced on 15 January 2021 and its current expiry date is 14 April 2021.

As set out in the terms and conditions of the Tender Offer, one of the conditions for the completion of the Tender Offer is the receipt of necessary approvals from competition and other regulatory authorities. As previously announced, both the European Commission and the Ministry of Economic Affairs and Employment of Finland have granted approval for the completion of the Tender Offer. The Offeror hereby announces that the Agency for Protection and Development of Competition of the Republic of Kazakhstan has also granted approval for PPG’s acquisition of Tikkurila’s Shares. The approval is an important milestone and further enhances the certainty of PPG completing the Tender Offer.

However, as approval for the acquisition of Tikkurila’s Shares from the Federal Antimonopoly Service of Russia still remains pending and is not expected to be received by the expiration of the current offer period, the Offeror has decided to extend the offer period for the Tender Offer to expire

FAQ

What is the new deadline for PPG's tender offer for Tikkurila shares?

The new deadline is May 11, 2021.

What regulatory approvals have been granted for PPG's acquisition of Tikkurila?

PPG has received approvals from the European Commission, the Finnish Ministry of Economic Affairs, and Kazakhstan's competition authority.

What is the status of regulatory approval from Russia for the Tikkurila acquisition?

Approval from the Federal Antimonopoly Service of Russia is still pending.

When did PPG commence its tender offer for Tikkurila shares?

The tender offer commenced on January 15, 2021.

What is the significance of the tender offer period extension for PPG?

The extension allows additional time to secure remaining regulatory approvals necessary for completing the acquisition.