Agreement on sale of Elkem to Bluestar completed
Orkla ASA enterered on 10 January 2011 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.