Clifford Chance has advised Norsk Hydro on its tender offer for the purchase of Alumetal. Lakatos, Koves, and Partners reportedly advised Norsk Hydro on Hungarian law-related matters. Penteris reportedly advised Alumetal.
The transaction remains contingent on regulatory approval and Hydro gaining control of a minimum of 66% of total Alumetal shares outstanding. The subscription period for the tender offer is expected to commence on June 13, 2022, and expire on July 12, 2022. According to a company press release, "Hydro has concluded an agreement with two members of the Alumetal Supervisory Board and all members of the Alumetal Management Board, in total holding approximately 39% of the company’s shares, who have undertaken to submit subscriptions in the tender offer for all their shares at the offer price."
"The transaction implies an enterprise value of approximately PLN 1.332 billion based on the latest reported net debt for fiscal year 2021 and dividends payable of PLN 106 million, with the dividend payment date falling on July 27, 2022," Clifford Chance informed. "The transaction will strengthen Hydro's recycling position in Europe and widen its product offering in the low-carbon and scrap-based foundry alloy market."
Norsk Hydro is an Oslo-headquartered aluminum and energy company, providing services for a range of market segments for aluminum, energy, metal recycling, renewables, and batteries.
Alumetal is a Warsaw Stock Exchange-listed Polish company producing casting aluminum alloys in Europe, with plants in Poland and Hungary.
"An acquisition of Alumetal is an exciting step towards delivering on our recycling strategy," Hydro Aluminium Metal Executive Vice President Eivind Kallevik commented. "We have been impressed by the development of the company over time, and by the quality of production, modern assets, and the competence of management and employees. We look forward to bringing Alumetal into the Hydro family and joining forces to develop an even better offering of low-carbon recycled aluminum to our customers in the years to come."
The Clifford Chance team was led by Counsel Jaroslaw Lorenc and included Associates Katarzyna Aleksandrowicz and Krzysztof Regucki.
Editor's Note: After this article was published, Penteris confirmed it had advised Alumetal. The firm's team included Partners Wojciech Fabrycki and Tomasz Kudelski, Senior Associate Malgorzata Motyl, and Associate Aleksandra Rogalska.