Norway's Hydro makes $240 mln bid for Polish recycler Alumetal (updated)

Alumetal SA

29/04/2022 06:36

(Adds quote, details and background)
    OSLO, April 29 (Reuters) - Norwegian metals maker Norsk
Hydro  NHY.OL  said on Friday it had offered to buy Polish
recycler Alumetal  AMT.WA  in an all-cash transaction for 1.07
billion zloty ($240.4 million), in an attempt to strengthen its
recycling profile in Europe.
    Hydro said two members of Alumetal's supervisory board and
all members of the management board had already agreed to the
takeover proposal, giving the Norwegian company a stake of 39%
so far.
    "With the transaction, Hydro will strengthen its recycling
position in Europe and widen its product offering in the
low-carbon and scrap-based foundry alloy market," the Oslo-based
company said in a statement.
    The offer of 68.4 zloty per share represents a 4.7% premium
over Thursday's closing price, but is still below last month's
all-time high for Alumetal's stock of 77.8 zloty.
    The Polish firm has an annual production capacity of 275,000
tons of aluminium from its plants, three of which are in Poland
and one in Hungary, Hydro said.
    The proposed transaction implies an enterprise value of
approximately 1.33 billion zloty, based on Alumetal's latest
reported debt and dividend plans, the Norwegian firm added.
     
    ($1 = 4.4514 zlotys)

 (Reporting by Terje Solsvik; Editing by Jacqueline Wong and
Sherry Jacob-Phillips)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))