Wednesday, Hindalco Industries Ltd, the Aditya Birla Group's flagship company, on Tuesday announced the completion of its acquisition of Atlanta, Georgia-based Novelis Inc. 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. Novelis will now operate as a subsidiary of the company.
Hindalco entered into an agreement with Novelis on February 10, 2007, to acquire the company in all-cash transaction at around $6.0 billion, including debt.
Under the terms of the agreement, Novelis shareholders will receive $44.93 in cash for each outstanding common share. Novelis shareholders approved the transaction in a special meeting on May 10, 2007.
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% 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 Aluminium Inc.
The Hindalco's Chairman, Kumar Mangalam Birla, said the combination of Hindalco and Novelis established an integrated producer with low-cost alumina and aluminium facilities combined with high-end rolling capabilities and a global footprint for growth and success.
The report further indicated that delisting of Novelis' shares on the New York Stock Exchange and the Toronto Stock Exchange is expected to occur shortly.
About Novelis
Novelis, Inc. produces aluminium sheet and light gauge products for the construction and industrial, beverage and food cans, foil products and transportation markets. It also engages in bauxite mining, alumina refining, primary aluminum smelting, and hydroelectric power generation.
About Hindalco
Hindalco Industries Ltd, a flagship company of the Aditya Birla Group, is structured into two strategic businesses, namely, Aluminium and Copper.
Hindalco clocked a net profit of Rs. 2,564 crores on total income of Rs. 18,683 crores for the fiscal year ended March 31, 2007.
Stock movement
At the NSE, Hindalco shares are currently trading at Rs. 148.00, up 1.58% on volume of 10.82 lakh shares.
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