By Lisa Kerner
Charlotte, N.C., Feb. 12 - Hindalco Industries Ltd. entered into a definitive agreement to acquire Novelis Inc. in an all-cash transaction worth an estimated at $6 billion, including $2.4 billion of debt.
Novelis shareholders will receive $44.93 in cash for each outstanding common share, according to a company news release.
The transaction has been unanimously approved by the boards of both companies and is expected to be completed in the second quarter of 2007.
"After careful consideration, the board has unanimously agreed that this transaction with Hindalco delivers outstanding value to Novelis shareholders," Novelis' acting chief executive officer, Ed Blechschmidt, said in the release.
"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."
Located in Mumbai, India, Hindalco is a non-ferrous metals company and part of the Aditya Birla Group.
Novelis is an Atlanta-based provider of aluminum rolled products.
| Acquirer: | Hindalco Industries Ltd.
|
| Target: | Novelis Inc.
|
| Payment per share: | $44.93
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| Announcement date: | Feb. 12
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| Expected closing: | Second quarter of 2007
|
| Stock price for target: | NYSE: NVL; $38.54 on Feb. 9
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