Hindalco wins Novelis for US$ 6 Billion

Mumbai, Feb 12: Hindalco Industries has entered into a definitive agreement for acquiring the world's leading producer of aluminium, Novelis, in an all-cash transaction valued at over US$ 6 billion, including a debt component of US$ 2.40 billion.

Under the terms of the agreement, Novelis shareholders will receive US $ 44.93 in cash for each outstanding common share, said Hindalco in a notice issued to Bombay Stock Exchange.

Based in Mumbai, the Company is a leader in Asia's aluminum and copper industries, and is the flagship Company of the Aditya Birla Group, a billion multinational conglomerate, with a market capitalization in excess of US$ 20 billion.

Following the transaction, the Hindalco will be the world's largest aluminum rolling company, one of the biggest producers of primary aluminum in Asia, and India's leading copper producer.

Commenting on the development, Mr KumarMangalam Birla, Chairman of the Aditya Birla Group said,''The acquisition of Novelis is a landmark transaction for Hindalco and our Group. It is in line with our long-term strategies of expanding our global presence across our various businesses and is consistent with our vision of taking India to the world.'' The combination of Hindalco and Novelis, Mr Birla said, will establish a global integrated aluminum producer with low-cost alumina and aluminum production facilities combined with high-end aluminum rolled product capabilities. ''The complimentary expertise of both these companies will create and provide a strong platform for sustainable growth and ongoing success.'' Mr Debu Bhattacharya, Managing Director of the Company&Director of Aditya Birla Management Corporation said, ''There are significant geographical market and product synergies. Novelis is the global leader in aluminum rolled products and aluminum can recycling, with a global market share of about 19 per cent. The Company has a 60 per cent share in the currently small but potentially high-growth Indian market for rolled products.'' The Company's position as one of the lowest cost producers of primary aluminum in the world is leverageable into becoming a globally strong player. The Novelis acquisition will give us immediate scale and a global footprint, he added.

The transaction has been unanimously approved by the Boards of Directors of both companies. The closing of the transaction is not conditional on the Company's obtaining financing.

The transaction will be completed by way of a plan of arrangement under applicable Canadian law. It will require the approval of 66.66 per cent of the votes cast by shareholders of Novelis Inc at a special meeting to be called to consider the arrangement followed by Court approval.

The closing of the transaction will also be subject to customary conditions including regulatory approvals, and is expected to be completed during the second quarter of 2007.

UNI