HT Image
HT Image

Hindalco buys US-based Novelis Inc for $6 billion

This makes the Aditya Birla Group company the world's largest aluminium rolling entity, reports Arun Kumar.
By Arun Kumar | None, New Delhi
PUBLISHED ON FEB 17, 2007 09:10 PM IST

Close on the heels of the Tatas acquiring Anglo-Dutch steelmaker Corus Group in a $12.1 billion deal, India's corporate sector made another gigantic overseas acquisition on Sunday. Hindalco, the flagship metal company of the Aditya Birla Group, bought Atlanta-based Novelis Inc, the world's leading producer of aluminium rolled products, for an enterprise value of $6 billion (Rs 27,000 crore).

That such a deal was in the offing was first reported by the Hindustan Times on January 26.

With this transaction, which is expected to be completed in the second quarter of 2007, Hindalco will be the world's largest aluminium rolling company, one of the biggest producers of primary aluminum in Asia and India's leading copper producer.

"The acquisition of Novelis is a landmark transaction for Hindalco and our group," said Kumar Mangalam Birla, chairman, AV Birla group. "It is in line with our long-term strategy of expanding our global presence across our various businesses and is consistent with our vision of taking India to the world."

Spun off from Canadian giant Alcan Inc, Novelis has 38 plants in 12 countries.

Currently, Novelis has 75.4 million outstanding diluted shares. At the rate of $44.93 a share, the equity transaction is being valued at $3.39 billion. The company has a debt of around $2.4 billion, adding up to a total enterprise valuation of $ 5.89 billion. Hindalco sources, however, peg its value at a full $6 billion.

UBS Investment Banking were Hindalco's financial advisers for the deal, while the funding was arranged by UBS and ABN Amro Bank.

In a leveraged buyout, Novelis shareholders will receive $44.93 for every share. The transaction needs the approval of 66.66 per cent of the shareholder votes.

A meeting of Novelis shareholders will be called after court approval for the acquisition is secured.

Hindalco needs to fork out around $2 billion towards the equity capital of the special purpose vehicle (SPV) that will be created for the acquisition. The balance amount will be raised through non-recourse loans.

Email Arun Kumar: arunkumar@hindustantimes.com

SHARE THIS ARTICLE ON
app
Close
People celebrate the gram panchayat election results in Mankoli village, Thane, near Mumbai. (Praful Gangurde/HT Photo)
People celebrate the gram panchayat election results in Mankoli village, Thane, near Mumbai. (Praful Gangurde/HT Photo)

Maharashtra Vikas Aghadi wins 58% of gram panchayat seats: All you need to know

PUBLISHED ON JAN 19, 2021 11:51 AM IST
A total of 214,880 candidates were in the fray for 125,709 seats; elections took place on January 15, the counting on Monday
Close
The FIR has named actor Saif Ali Khan adn Sinil Grover along with the makers.
The FIR has named actor Saif Ali Khan adn Sinil Grover along with the makers.

FIR against 'Tandav' makers for allegedly showing UP Police in bad light

By hindustantimes.com | Edited by Amit Chaturvedi
UPDATED ON JAN 19, 2021 11:54 AM IST
The FIR has been filed in Rabupura and also accuse the makers and actors of 'Tandav' of inciting communal disharmony and hurting religious sentiments.
Close
Representational Image.
Representational Image.

Gorakhpur woman says was not kidnapped, forced to convert

By HT Correspondent | Edited by Sameer
PUBLISHED ON JAN 19, 2021 11:31 AM IST
Her father lodged a missing report on January 5 and fresh charges under UP’s new anti-conversion ordinance were added after the woman’s call records showed she was in touch with the Karnataka man for over a year
Close
The arrest was made by the District Reserve Guard (DRG) during an operation launched on Monday.(Representative Photo)
The arrest was made by the District Reserve Guard (DRG) during an operation launched on Monday.(Representative Photo)

Woman Maoist carrying 8 lakh bounty arrested in Chhattisgarh

PUBLISHED ON JAN 19, 2021 11:21 AM IST
Police said that Korsa Maase (24), resident of Sakin Pujaripada village, was a member of Maoists’ Company Number 1, in Maad division of CPI (Maoist).
Close
Public bike-sharing facility was launched at Bandra-Kurla Complex in Mumbai last year. (HT fle)
Public bike-sharing facility was launched at Bandra-Kurla Complex in Mumbai last year. (HT fle)

Public bike-sharing cheapest mode for last-mile connectivity in Mumbai: Survey

UPDATED ON JAN 19, 2021 11:04 AM IST
The analysis by World Resources Institute (WRI) India shows that while public bike-sharing costs 2 for a five km ride, the same distance costs 5 in a BEST bus and local train (second class), 50 in first class and 20 in Metro
Close
The apex court had also ordered that after the judgement of Delhi High Court, Centre should grant permanent commission to women officers.(PTI file photo)
The apex court had also ordered that after the judgement of Delhi High Court, Centre should grant permanent commission to women officers.(PTI file photo)

Indian Army organises 5-day recruitment drive for women in Lucknow

ANI, Lucknow
PUBLISHED ON JAN 19, 2021 10:51 AM IST
The recruitment drive for women comes after the apex court on February 17, 2020.
Close
A health worker in PPE collects a swab sample from a person for coronavirus testing, outside New Ashok Nagar Metro station in New Delhi.(Raj K Raj/HT PHOTO)
A health worker in PPE collects a swab sample from a person for coronavirus testing, outside New Ashok Nagar Metro station in New Delhi.(Raj K Raj/HT PHOTO)

India’s daily Covid-19 cases drop to 10,064, recoveries surpass 10.22 million

By hindustantimes.com | Written by Kanishka Sarkar, Hindustan Times, New Delhi
PUBLISHED ON JAN 19, 2021 10:49 AM IST
A total of 3,81,305 beneficiaries were vaccinated in the first three days of the Covid-19 immunisation drive.
Close
The weather office said that the coldest place in the valley on the intervening night of Monday and Tuesday was Qazigund in south Kashmir where the mercury plunged to -8.6 degrees Celsius, around 5 notches below normal. (AP)
The weather office said that the coldest place in the valley on the intervening night of Monday and Tuesday was Qazigund in south Kashmir where the mercury plunged to -8.6 degrees Celsius, around 5 notches below normal. (AP)

Kashmir: Wet spell later this week could end cold wave, says IMD

By Mir Ehsan
PUBLISHED ON JAN 19, 2021 10:41 AM IST
From the past one week,a cold wave has gripped the Valley and the night temperature has been hovering around -8 and -7 degrees Celsius
Close
Uttar Pradesh chief minister Yogi Adityanath. (File photo)
Uttar Pradesh chief minister Yogi Adityanath. (File photo)

MP high court rejects bail of man arrested for sharing Yogi’s morphed picture

By HT Correspondent | Edited by Sameer
PUBLISHED ON JAN 19, 2021 10:30 AM IST
The judge reportedly said that Yogi isn’t just a chief minister but also a saint and religious sentiments were hurt when the accused ”insulted a saint”
Close
Representational image. (REUTERS)
Representational image. (REUTERS)

Covid-19 vaccines: Fact sheets warn against use in immuno-compromised

UPDATED ON JAN 19, 2021 10:23 AM IST
The health ministry’s guidance document for states on precautions and contraindications for Covid-19 vaccine was released two days before the launch of Covid-19 vaccination drive on January 16
Close
PM Modi posted a picture of his visit to Adyar cancer institute while condoling the demise of Dr V Shanta.(Twitter/@narendramodi)
PM Modi posted a picture of his visit to Adyar cancer institute while condoling the demise of Dr V Shanta.(Twitter/@narendramodi)

'Saddened by Dr V Shanta's demise': PM Modi pays tribute to senior oncologist

By hindustantimes.com | Edited by Amit Chaturvedi
PUBLISHED ON JAN 19, 2021 10:18 AM IST
Veteran oncologist Dr V Shanta was admitted to a private hospital in the city last night after she complained of chest pain.
Close
A general view of the tent city at Magh Mela. (File photo)
A general view of the tent city at Magh Mela. (File photo)

Magh mela: Organisers of dance fined for obscenity

By HT Correspondent | Edited by Sameer
UPDATED ON JAN 19, 2021 10:18 AM IST
A Rs2 lakh fine has also been slapped on show organisers; Prayagraj DM has assured that such events are not repeated in the mela area
Close
Representational image. (Raj K Raj/HT PHOTO)
Representational image. (Raj K Raj/HT PHOTO)

UP govt lifts ban on import of poultry from other states

PUBLISHED ON JAN 19, 2021 10:13 AM IST
The UP government had on January 10 issued a circular declaring the whole state as “controlled zone” and banning the import of all kinds of live birds till January 24
Close
Dr Shanta was the Chairman and Executive Chairman of the Cancer Institute (WIA) Chennai.(@VanathiBJP/Twitter)
Dr Shanta was the Chairman and Executive Chairman of the Cancer Institute (WIA) Chennai.(@VanathiBJP/Twitter)

Cancer Institute founder V Shanta passes away in Chennai

ANI, Chennai
UPDATED ON JAN 19, 2021 11:12 AM IST
The veteran oncologist was admitted to a private hospital in the city last night after she complained of chest pain.
Close
Union minister for road transport and highways Nitin Gadkari. (File photo)
Union minister for road transport and highways Nitin Gadkari. (File photo)

Govt aims to reduce road accidents by 50% before 2025: Nitin Gadkari

By HT Correspondent | Edited by Smriti Sinha
PUBLISHED ON JAN 19, 2021 10:10 AM IST
Inaugurating the first National Road Safety Month on Monday, the minister for road transport and highways said that social-economic losses from accident deaths amount to a shocking 3.14% of GDP every year
Close
SHARE
Story Saved
OPEN APP