Agreement on sale of Elkem to Bluestar completed
Orkla ASA entered on 10 January 2011 into a binding agreement for the sale of
Elkem to China National Bluestar Group Co., Ltd (Bluestar). The transaction has
been completed today, 14 April, in accordance with the conditions described in
the notification to the stock exchange 11 January 2011.
After closing and capital structure adjustments pursuant to the agreement, Orkla
has received a total amount of NOK 12.5 billion consisting of the price paid for
the shares and the buyer's takeover of debt in Elkem. Furthermore, Orkla expects
to receive assets equivalent to around NOK 500 million related to the adjustment
of insurance payouts and the transfer of a deferred tax asset that will be
utilised by Orkla in the 2010 tax year. The total value of the agreement for
Orkla is thus approximately NOK 13 billion.
"This transaction is an important part of Orkla's strategy of focusing its
operations, thereby making it possible to intensify industrial investment and
growth in Sapa and Orkla Brands. We are therefore pleased that the transaction
has now finally been completed. I would like to take the opportunity to thank
everyone involved for their contributions to the rapid completion of the
agreement, so that Elkem can now further develop its operations under new
ownership," states Bjørn M. Wiggen, President and CEO of Orkla ASA.
The transaction covers Elkem Silicon Materials, Elkem Foundry Products, Elkem
Carbon and Elkem Solar. The agreement includes the 1.5 TWh/year power contract
that Orkla acquired in 2010, which will meet the long-term power needs of
Elkem's smelting plants in Norway. Orkla will remain the owner of the shares in
Elkem Energi AS, including its 85% stake in AS Saudefaldene.
Orkla ASA,
Oslo, 14 April 2011
Contact:
Rune Helland, Senior VP Investor Relations, Orkla ASA: +47 22 54 44 11
Johan Chr. Hovland, Senior VP, Corporate Communications
and Public Affairs, Orkla ASA: +47Â 91 76 34 91
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Orkla ASA via Thomson Reuters ONE
[HUG#1506181]
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