(By Balachander) PPG Industries Inc. (NYSE: PPG), a supplier of protective and decorative coatings, said it has commenced its exchange offer related to the split-off transaction of its commodity chemicals business.
The split-off transaction is related to the separation and merger of Eagle Spinco Inc., a PPG subsidiary that will own PPG's commodity chemicals business, with a subsidiary of Georgia Gulf Corp. (NYSE: GGC).
In July, PPG agreed to separate and merge its commodity chemicals business with Georgia Gulf.
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Under the terms of the exchange offer, PPG shareholders have the option to exchange all, some or none of their shares of PPG common stock for shares of Eagle Spinco common stock. Tendering PPG shareholders are expected to receive approximately $1.11 of Georgia Gulf common stock for every $1.00 of PPG common stock tendered.
PPG expects to issue roughly 35.24 million shares of Eagle Spinco common stock in the exchange offer.
The exchange offer and withdrawal rights are scheduled to expire at 8:00 a.m., New York City time, on January 28, 2013
PPG shares retreated 1.97 percent to trade at $132.09 on Thursday.