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11
February 2007
Hindalco
Industries Ltd. and Novelis Inc. announce an agreement for
Hindalco's acquisition of Novelis for nearly US$ 6 billion
Aditya
Birla Group's Hindalco Industries Limited, India's largest
non-ferrous metals company, and Novelis Inc. (NYSE: NVL) (TSX:
NVL), the world's leading producer of aluminium rolled products,
today announced that they have entered into a definitive agreement
for Hindalco to acquire Novelis in an all-cash transaction
which values Novelis at approximately US$6 billion, including
approximately US $2.40 billion of debt. Under the terms of
the agreement, Novelis shareholders will receive US $44.93
in cash for each outstanding common share.
Based
in Mumbai, India, Hindalco is a leader in Asia's aluminium
and copper industries, and is the flagship company of the
Aditya Birla Group, a $12 billion multinational conglomerate,
with a market capitalisation in excess of $20 billion. Following
the transaction Hindalco, with Novelis, will be the world's
largest aluminium rolling company, one of the biggest producers
of primary aluminium in Asia, and India's leading copper producer.
Mr. Kumar
Mangalam 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 will
establish a global integrated aluminium producer with low-cost
alumina and aluminium production facilities combined with
high-end aluminium rolled product capabilities. The complementary
expertise of both these companies will create and provide
a strong platform for sustainable growth and ongoing success."
Acting
Chief Executive Officer of Novelis, Mr. Ed Blechschmidt, said,
"After careful consideration, the Board has unanimously
agreed that this transaction with Hindalco delivers outstanding
value to Novelis shareholders. Hindalco is a strong, dynamic
company. The combination of Novelis' world-class rolling assets
with Hindalco's growing primary aluminium operations and its
downstream fabricating assets in the rapidly growing Asian
market is an exciting prospect. Hindalco's parent, the Aditya
Birla Group, is one of the largest and most respected business
groups in India, with growing global activities and a long-term
business view."
Mr. Debu
Bhattacharya, Managing Director of Hindalco and Director of
Aditya Birla Management Corporation Ltd., 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. Hindalco has a 60 per cent share in the currently
small but potentially high-growth Indian market for rolled
products. Hindalco's position as one of the lowest cost producers
of primary aluminium in the world is leverageable into becoming
a globally strong player. The Novelis acquisition will give
us immediate scale and a global footprint."
The transaction
has been unanimously approved by the Boards of Directors of
both companies. The closing of the transaction is not conditional
on Hindalco 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.
About
Novelis
Novelis is the global leader in aluminium rolled products
and aluminium can recycling. The company operates in 11 countries,
has approximately 12,500 employees and reported $8.4 billion
in 2005 revenue. Novelis has the unrivaled capability to provide
its customers with a regional supply of technologically sophisticated
rolled aluminium products throughout Asia, Europe, North America
and South America. Through its advanced production capabilities,
the company supplies aluminium sheet and foil to the automotive
and transportation, beverage and food packaging, construction
and industrial, and printing markets. Visit www.novelis.com
About
the Aditya Birla Group
The Aditya Birla Group is India's first truly multinational
corporation, with a workforce of 85,000 employees belonging
to over 20 different nationalities. Its 74 state-of-the-art
manufacturing units and service facilities span India, Thailand,
Laos, Indonesia, Philippines, Egypt, Canada, Australia, China,
USA, UK, Germany, Hungary and Portugal. A premium conglomerate,
the Aditya Birla Group participates in wide range of market
sectors including viscose staple fiber, non-ferrous metals,
cement, viscose filament yarn, branded apparel, carbon black,
chemicals, fertilisers, sponge iron, insulators, financial
services, telecom, BPO and IT services. Visit www.adityabirla.com
About
Hindalco
Established in 1958, Hindalco is currently structured into
two strategic businesses, aluminium and copper, with 2006
revenues of approximately $2.6 billion. Hindalco's integrated
operations and operating efficiency have positioned the company
as Asia's largest integrated primary producer of aluminium
and among the most cost-efficient producers globally. Its
copper smelter is the world's largest custom smelter at a
single location. Hindalco stock is publicly traded on the
Bombay Stock Exchange (BSE) and the National Stock Exchange
of India Ltd (NSE). Its current market capitalisation is US$
4.3 billion. Visit www.hindalco.com
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