Hindalco announces acquisition of Novelis
Mumbai, May 16: Aditya Birla Group's Hindalco Industries today announced the acquisition of Canadian-based Novelis.
Novelis will now operate as a subsidiary of Hindalco, an official statement said.
The Company had, earlier, entered into an agreement with Novelis on February 10 this year to acquire it in an all-cash transaction at approximately USD 6.0 billion, including debt. Under the terms of the agreement, Novelis shareholders will receive USD 44.93 in cash for each outstanding common share.
Novelis shareholders had approved the transaction at a special meeting on May 10, here in Mumbai. Hindalco is a multinational conglomerate with annual revenue of USD 14 billion and a market capitalization in excess of USD 23 billion.
Company chairman Kumar Mangalam Birla said, ''We look upon the aluminum business as a core business that has enormous growth potential in revenues and earnings. Our vision is to be a premium metals major, global in size and reach with a passion for excellence.'' The acquisition of Novelis is a step in this direction, he added.
The combination of Hindalco and Novelis establishes an integrated producer with low-cost alumina and aluminum facilities combined with high-end rolling capabilities and a global footprint, Mr Birla said.
The transaction was accomplished by way of a statutory plan of arrangement under Canadian law. The company through its wholly-owned subsidiary AV Metals Inc., acquired 75,415,536 common shares of Novelis, representing 100 per cent of the issued and outstanding common shares. Immediately after closing, AV Metals Inc. transferred the common shares of Novelis to its wholly-owned subsidiary AV Aluminum Inc.
Novelis' stock has ceased trading on the New York Stock Exchange.
De-listing on the New York Stock Exchange and the Toronto Stock Exchange is expected to occur shortly, the statement added.
UNI