Courtaulds PLC - Re Pref Share Repayment

RNS No 5042m
COURTAULDS PLC
25th September 1998


PROPOSED CANCELLATION AND REPAYMENT OF PREFERENCE SHARES

Courtaulds plc ('Courtaulds') announces that it has today posted a circular to
holders of its preference shares in relation to the proposed cancellation  and
repayment of its 3.5% (formerly 5%) cumulative first preference shares (the
'First Preference Shares') and its 4.2% (formerly 6%) cumulative redeemable
second preference shares (the 'Second Preference Shares').

The recommended offer by Akzo Nobel UK for the entire issued and to be issued
ordinary share capital of Courtaulds was declared wholly unconditional on 7
July, 1998.  By 7 August, 1998 Akzo Nobel UK had received acceptances in
respect of over 90 per cent of ordinary shares, at which time Akzo Nobel UK
commenced the compulsory acquisition procedure to acquire all remaining
ordinary shares.  Following the completion of this procedure, Akzo Nobel UK
and its nominees now hold the entire issued ordinary share capital of
Courtaulds.

Given that it is now a subsidiary of Akzo Nobel UK, Courtaulds believes that
it is appropriate to simplify its capital structure and is therefore seeking
approval from shareholders to cancel and repay the First Preference Shares and
the Second Preference Shares (together the 'Preference Shares').  It is
proposed that the cancellation and repayment be effected by means of a
reduction of capital.  The reduction of capital requires the passing of a
special resolution at an extraordinary general meeting which will be held on
19 October, 1998 and subsequent confirmation by the High Court.

If the proposed reduction of capital becomes effective, holders of Preference
Shares will be paid the par value of their shares (i.e. #1.00) together with
any accruals of dividend calculated to the date on which the reduction of
capital becomes effective.

In determining the level at which Courtaulds proposes to repay the Preference
Shares, the following factors have been considered:

Prior to the announcement that Akzo Nobel UK proposed to make an offer for the
ordinary share capital of Courtaulds, both the First Preference Shares and the
Second Preference Shares had historically traded below par in the market.

The terms of the Second Preference Shares provide that Courtaulds can redeem
the Second Preference Shares at any time on sixty days' notice at par value
together with accruals and arrears of dividend.

Under the Courtaulds Articles of Association, the Preference Shareholders are
entitled, inter alia, in the event of a winding-up to repayment of the capital
paid up on their shares (i.e.  #1.00), together with any arrears or accruals
of dividend.

Subject to the approval of shareholders and subsequent confirmation by the
High Court, it is expected that the reduction of capital will become effective
on 19 November, 1998, following which the listings of the Preference Shares on
the London Stock Exchange will be cancelled.

Enquires

Ian Harrison
Company Secretary                            Tel: + 44 (0)171 612 1157

Donald Anderson                                                 
Corporate Communications                     Tel: + 44 (0)171 612 1293

PRESS RELEASE        
CORPORATE PRESS RELATIONS                    Direct line  [phone]

              Akzo Nobel nv
              Velperweg 76
              P.O. Box 9300
              6800 SB Arnhem
              The Netherlands
              Fax [phone]

END


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