MUHAMMAD SAQIB

KARACHI: IGI Holdings Limited has announced a major strategic move to acquire a controlling stake in Akzo Nobel Pakistan Limited, with its wholly-owned subsidiary IGI Investments (Private) Limited entering into a share purchase agreement for the transaction valued at Rs16.22 billion.

In a disclosure submitted to the Pakistan Stock Exchange, IGI Holdings stated that IGI Investments has executed the agreement with ICI Omicron B.V., a wholly-owned subsidiary of Akzo Nobel N.V., for the acquisition of 98.31% shareholding in Akzo Nobel Pakistan, following the completion of due diligence.

The proposed acquisition represents one of the significant corporate transactions in Pakistan’s chemicals and coatings sector, signalling IGI Group’s intent to expand its footprint in the industrial and consumer segments.

The company further indicated that, subject to applicable laws and separate arrangements, IGI Investments may also acquire an additional 1.69 percent stake from minority shareholders, potentially increasing its total ownership to full control of the target company.

The transaction; however, remains contingent upon obtaining all necessary corporate and regulatory approvals, including clearance from the Competition Commission of Pakistan, as well as compliance with relevant legal requirements.

According to the disclosure, the Board of Directors of IGI Investments approved the acquisition in its meeting held on April 16, 2026, and has authorized key company officials—including the Chief Executive Officer, directors, Chief Financial Officer, and Company Secretary—to undertake all necessary steps to finalize the transaction.

The acquisition is being carried out at an enterprise value of Rs16,224 million, reflecting the strategic valuation assigned to Akzo Nobel Pakistan’s operations, which include paints, coatings, and related chemical products.

Market participants view the move as a consolidation play within the sector, with IGI Holdings aiming to leverage synergies, strengthen its portfolio, and tap into growth opportunities in Pakistan’s construction, industrial, and consumer markets.