Akzo Nobel confirms Organon IPO intent

Dutch group Akzo Nobel has confirmed that it plans to arrange an Initial Public Offering for its Organon BioSciences human health care business in the coming weeks. There has been speculation that the firm would sell this business outright, but that is apparently not to be the case (Marketletters passim). Akzo says it intends to sell around 20%-30% of Organon BioSciences' shares on the Euronext in Amsterdam and, following the IPO, it will separate the pharmaceutical business fully within two or three years.

Commenting on the decision, Akzo' chief executive, Hans Wijers, said: "we believe that the separation and IPO of Organon BioSciences will create significant long-term value for Akzo Nobel shareholders. Management board member Toon Wilderbeek added: "Organon BioSciences is well positioned for future growth thanks largely to our continued commitment to innovative medicine in human and animal health care. We plan to continue to build our current product platform and achieve growth through our own discovery and development, but also through licensing and add-on acquisitions."