Jun 1 2007
Hindalco, the Aditya Birla Group's flagship company announced today the completion of its acquisition of Novelis. The transaction makes Hindalco the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia, as well as being India's leading copper producer.
On 10 February 2007, Hindalco entered into an agreement with Novelis to acquire the company in an all-cash transaction which values Novelis at approximately US$ 6.0 billion, including debt. Under the terms of the agreement, Novelis shareholders will receive US$ 44.93 in cash for each outstanding common share. Novelis shareholders approved the transaction by an overwhelming majority (99.8 per cent) in a special meeting on 10 May 2007.
"We look upon the aluminium business as a core business that has enormous growth potential in revenues and earning. 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", said Mr. Kumar Mangalam Birla, Chairman, Hindalco.
"The combination of Hindalco and Novelis establishes an integrated producer with low-cost alumina and aluminium facilities combined with high-end rolling capabilities and a global footprint. The complementary assets and expertise of the team provides a strong platform for growth and success", added Mr. Birla.
Welcoming the men and women of Novelis into Hindalco and the Aditya Birla Group, Mr. D. Bhattacharya, managing director of Hindalco and director of Aditya Birla Management Corporation said, "Novelis makes a perfect fit for Hindalco. There are enormous geographical market and product synergies. Novelis is the global leader in the value-added high-end aluminium rolled products and aluminium can recycling. Hindalco is consistently increasing its share of value-added products, which today stand at nearly 60 per cent. The Novelis acquisition gives it an instant leg-up with its technologically sophisticated rolled aluminium products capability, apart from a scale and a global footprint".
"We are very pleased to complete this transaction with Hindalco," said Novelis' chief operating officer, Ms. Martha Brooks. "The arrangement has created significant value for Novelis shareholders while at the same time providing new opportunities for the future of the combined company. With the support of Hindalco and the Aditya Birla Group, we will be able to accelerate the Novelis business strategy, leveraging our world-class assets for the production of premium aluminium products."
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.