PPG Industries said today it received about $900 million in cash and reduced the number of its shares outstanding by 7 percent after completing the spin off of its commodities chemicals business to Georgia Gulf Corp.
The spinoff created a new company, Axiall, which consists of the former PPG unit and Georgia Gulf's business.
PPG said the tender offer was oversubscribed, so that only a portion of the shares tendered were accepted. Under the terms of the transaction, PPG accepted 10.8 million, or about 14 percent, of the 72.1 million PPG shares tendered by investors who wanted to own shares in Axiall.
PPG shareholders will receive 3.26 Axiall shares for each of the shares that were tendered and accepted.
The new company will trade on the New York Stock Exchange under the symbol AXLL.
The spin off was announced in July.
Shortly before 1 p.m., PPG shares were trading at $138.94, down $5.28.
Len Boselovic: firstname.lastname@example.org or 412-263-1941.