Norwegian aluminium producer Norsk Hydro ASA concluded its subscription period for its tender offer for Alumetal last week. The firm reports that over 97 percent of the shares subscribed for the sale of the tender offer during that period.
Hydro says that the end of the subscription period means it will move forward in purchasing the totality of Alumetal shares. Sale purchases were scheduled to end yesterday, with settlement planned for tomorrow.
Eivind Kallevik, Executive Vice President of Hydro Aluminium Metal, said in a press release that it is highly satisfied by the substantial buy-in to its plan to purchase Alumetal.
“We are very pleased that our tender offer has ended successfully. As previously announced, our aim will now be to efficiently carry out a squeeze-out of the shares remaining in the hands of minority shareholders and to delist Alumetal from the WSE. We are impressed by Alumetal’s development, the quality of production, and the competence of management and employees. At this stage, we aim to integrate Alumetal within Hydro and to develop an even better offering of low-carbon recycled aluminium to our customers.”
Hydro says the final aggregate equity purchase price will total about PLN1,265 million (US$307 million), with the enterprise value estimated at PLN1,651 million (US$401 million).
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad.