Saturday, May 12, 2007

Novelis nod for Hindalco bid

Hindalco Industries today announced that the shareholders of Novelis approved the former’s proposal to purchase the latter.The shareholders’ approval followed a proposal of Hindalco to acquire the Atlanta-based aluminium downstream leader Novelis for an enterprise value of nearly $ 6 billion three months ago.

Around 99.8 per cent of Novelis shareholders cast votes in favour of the transaction. Under the Canadian laws, the proposed acquisition required support from at least 66. 44 per cent of the shareholders.

The terms of agreement signed between Novelis and Hindalco envisaged that Hindalco will pay $ 44.93 a share, amounting to $3.5 billion (Rs 14,364 crore).Hindalco expects to complete the transaction, which now awaits the court approval, by May 15. The Birla group’s Canada-based special purpose vehicle, AV Metals, will infuse $3.5 billion to finance the deal.

Read more in The Business Standard article.

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