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DSM Intends to Acquire 51 Percent of AGI Corporation


AGI offers a broad range of environmentally friendly UV curable resins and other products

Royal DSM N.V., the global life sciences and materials sciences company headquartered in the Netherlands, announced that it intends to acquire a 51% stake in AGI Corporation of Taiwan (AGI) through a subscription for newly to be issued shares combined with a public tender offer, subject to AGI corporate approvals and to regulatory and other customary conditions, approvals and notifications.

AGI offers a broad range of environmentally friendly UV curable resins and other products. These products are used in coatings for paper, wood, plastic and graphic arts applications. AGI reported net sales in 2009 of NTD 3,561 million (approximately €90 million). AGI is listed on the emerging companies board of the GreTai Securities Market in Taipei. This intended transaction is consistent with DSM’s strategic focus on high growth economies, sustainability, innovation and partnerships.

The intended acquisition will be for a 51% stake for about €48 million and will consist of a mix of newly to be issued shares and purchases from existing shareholders by way of a public tender offer, as further described below.

Dimitri de Vreeze, president of DSM Resins, commented, “The acquisition of 51% of AGI will allow DSM Resins to strengthen its UV technology platform. UV curing is environmentally friendly and the winning technology for the future. UV paint and ink systems have a low eco-footprint in combination with low total operational costs. Therefore the acquisition will enhance the innovative and sustainable character of our portfolio. This expansion in UV paint and ink system markets will allow DSM Resins to realize its ambition to become the global leader in sustainable and innovative resins, the key ingredients of paints and inks. We look forward to working with AGI and its shareholders, management and employees to make the combination a success for all.”

“The combination of AGI’s technology and product portfolio with DSM Resins’ global network and complementary solutions will bring substantial synergies and benefits to both companies and their shareholders,” Nico Gerardu, member of the DSM Managing Board and responsible for the Performance Materials cluster, commented. “The proposed acquisition fits well within all of DSM’s four growth drivers as defined in our corporate strategy DSM in motion: driving focused growth. In particular, it fits DSM’s Performance Materials strategy to grow via innovative sustainable solutions in high growth economies.”

The intended transaction is expected to close in Q2 of 2011.