Hindalco
Acquires US Firm
Novelis for 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 aluminum rolled
products, have
recently 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.
India's Hindalco
is a leader in
Asia's aluminum
and copper industries,
and is the flagship
company of the
Aditya Birla Group,
a $12 billion
multinational
conglomerate,
with a market
capitalization
in excess of $20
billion. Following
the transaction
Hindalco, with
Novelis, will
be the world's
largest aluminum
rolling company,
one of the biggest
producers of primary
aluminum in Asia,
and India's leading
copper producer.
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
aluminum producer
with low-cost
alumina and aluminum
production facilities
combined with
high-end aluminum
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,
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
aluminum 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."
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 aluminum
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 aluminum rolled
products and aluminum
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 aluminum
products throughout
Asia, Europe,
North America
and South America.
Through its advanced
production capabilities,
the company supplies
aluminum sheet
and foil to the
automotive and
transportation,
beverage and food
packaging, construction
and industrial,
and printing markets.
Visit www.novelis.com
The Aditya Birla
Group is one of
India's multinational
corporations,
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
Established in
1958, Hindalco
is currently structured
into two strategic
businesses, aluminium
and copper, with
2006 revenues
of approximately
$2.6 billion.
Hindalco's integrated
operations and
operating efficiency
have positioned
the company as
Asia's largest
integrated primary
producer of aluminum
and among the
most cost-efficient
producers globally.
Its copper smelter
is the world's
largest custom
smelter at a single
location. Hindalco
stock is publicly
traded on the
Bombay Stock Exchange
(BSE) and the
National Stock
Exchange of India
Ltd (NSE). Its
current market
capitalisation
is US$ 4.3 billion.
For further information
contact www.hindalco.com
