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15 May 2007
Novelis now a Hindalco subsidiary
- Acquisition process completed
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.
For more information, contact:
Dr. Pragnya Ram,
Group Executive President,
Corporate Communications,
Aditya Birla Management Corporation Private Limited
Tel: 91-22-6652 5000 / 2499 5000
Fax: 91-22-6652 5741/ 42
Email: pragnya.ram@adityabirla.com
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