Activist investor Cevian backs AkzoNobel's strategy with 3% stake purchase

By Alessandro Parodi

(Reuters) -Activist investor Cevian Capital has taken a 3.02% stake in Dulux paints maker AkzoNobel, a filing by Dutch market regulator AFM showed on Friday, signalling confidence in the Dutch group's long-term strategy.

Shares in AkzoNobel were up 5% at 0912 GMT, among top gainers on Europe's benchmark STOXX 600 index.

"Cevian sees significant long-term value potential in Akzo Nobel," Robert Schuchna, partner at Cevian Capital, told Reuters.

"We have high expectations that Chair Ben Noteboom and CEO Greg Poux-Guillaume will deliver on their strategy of improving operating performance and sharpening the portfolio to realize this potential," he added.

Cevian held more than 5 million ordinary shares of AkzoNobel through its portfolio Cevian Capital II Master Fund LP as of Wednesday, the filing showed.

The two companies have had regular contact over the past two years, an AkzoNobel spokesperson said, welcoming Cevian's involvement as "a confirmation that there remains significant value to be realized in our company".

The Dutch paints and coatings maker had lowered its core profit outlook for 2025 in July, citing market uncertainties and currency drawbacks, but reiterated its mid-term guidance for an adjusted EBITDA margin of more than 16% and a return on investment between 16% and 19%.

Kepler Cheuvreux analyst Christian Faitz said Cevian's stake purchase was a "vote of confidence" for the company's strategy.

He noted that AkzoNobel had a history of not following through with plans, but this time it was "also acting on announcements", supporting confidence in the margin target.

In 2023, the group launched an "industrial transformation" plan aiming to save 250 million euros ($290 million) through efficiency measures by 2027.

The news of Cevian's stake was first reported by the Financial Times.

($1 = 0.8626 euros)

(Reporting by Alessandro Parodi and Mateusz Rabiega in Gdansk, Andres Gonzalez Estebaran in London and Oliver Hirt in Zurich; editing by Milla Nissi-Prussak)