PPG Announces Preliminary Results Of Exchange Offer; Intends To Accept Tendered Shares And Expects Closing Of The Separation Of Its Commodity Chemicals Business And The Merger Of The Business With Georgia Gulf Later Today
PPG Industries (NYSE: PPG) today announced the preliminary results of
its exchange offer for PPG common stock in connection with the
previously announced separation of PPG’s commodity chemicals business
PPG Industries (NYSE: PPG) today announced the preliminary results of its exchange offer for PPG common stock in connection with the previously announced separation of PPG’s commodity chemicals business and the merger of Eagle Spinco Inc., the PPG subsidiary holding its commodity chemicals business, with a subsidiary of Georgia Gulf Corporation (NYSE: GGC). PPG intends to accept shares tendered in the exchange offer, subject to proration, and expects the closing of the merger to occur immediately thereafter later today, following the satisfaction of all closing conditions. Upon the completion of the merger, the combined company formed by uniting Georgia Gulf with PPG’s 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 exchange offer, PPG shareholders had the option to exchange some, none or all of their shares of PPG common stock for shares of Eagle Spinco common stock, subject to proration. Following the closing of the merger, each share of Eagle Spinco common stock will automatically be 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 will own 3.2562 shares of Georgia Gulf common stock for each share of PPG common stock accepted for exchange. Exchange Offer Results Pursuant to the exchange offer, which expired today at 8:00 a.m., New York City time, and based on a preliminary count by the exchange agent, a total of 72,122,892 shares of PPG common stock were validly tendered and not properly withdrawn prior to the expiration of the exchange offer, including 34,973,611 shares tendered pursuant to guaranteed delivery procedures. The total number of shares tendered includes an estimated 583,043 shares of PPG common stock tendered by odd-lot shareholders not subject to proration. PPG will exchange a total of 10,825,227 shares of PPG common stock in the exchange offer.
Jefferies analysts note that recent construction spending data indicates a cycle rotation away from construction-exposed names and toward industrial- and durable goods-levered firms could be playing out.