Jan. 29, 2013 – PPG Industries today announced the successful closing of the previously announced separation of its commodity chemicals business and merger of its wholly-owned subsidiary, Eagle Spinco, with a subsidiary of Georgia Gulf Corporation.
Jan. 29, 2013 – PPG Industries today announced the successful closing of the previously
announced separation of its commodity chemicals business
and merger of its wholly-owned subsidiary, Eagle Spinco, with a subsidiary
of Georgia Gulf Corporation. Pursuant to the merger, Eagle Spinco, the entity
holding PPG’s former commodity chemicals business, is now a wholly-owned
subsidiary of Georgia Gulf. The closing of the merger followed the expiration
of the related exchange offer and the satisfaction of certain other conditions.
The combined company formed by uniting Georgia Gulf with PPG’s former commodity
chemicals business will be named Axiall Corporation and will be traded on the
New York Stock Exchange under the ticker symbol AXLL.
In the merger, each
share of Eagle Spinco common stock was automatically converted into the right
to receive one share of Georgia Gulf common stock. As a result, PPG
shareholders who tendered their shares of PPG common stock as part of the
exchange offer
received 3.2562 shares of Georgia Gulf common stock for each share of PPG
common stock exchanged and accepted by PPG.
Pursuant to the
exchange offer, which expired today at 8:00 a.m., EST, PPG has accepted
10,825,227 shares of PPG common stock in exchange for 35,249,104 shares of
Eagle Spinco common stock. Because more than 10,825,227 shares of PPG common
stock were tendered, all shares of Eagle Spinco common stock owned by PPG are
being distributed in the exchange offer, and no shares of Eagle Spinco common
stock were distributed as a pro rata dividend.
In connection with
the separation of PPG’s commodity chemicals business and its merger with
Georgia Gulf, PPG also received approximately $900 million in cash.
As a result of the successful exchange offer, PPG will reduce its outstanding
shares of common stock by 10,825,227 shares, or approximately 7 percent.
PPG will report the
results of its commodity chemicals business for January 2013 and a net gain
resulting from the separation as results from discontinued operations when it
reports its results for the quarter ending March 31, 2013. In the PPG results
for prior periods, presented for comparative purposes beginning with the first
quarter 2013, the results of its former commodity chemicals business will be
reclassified from continuing operations and presented as the results from
discontinued operations.
Related link
www.ppg.com
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