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23 OCTOBER 2018 AL CIRCLE

Arconic mulling US$11 billion worth acquisition offer from Apollo - sources

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the report by Reuters, the lightweight aluminium products manufacturer Arconic Inc’s board of directors is mulling US$11 billion worth acquisition offer which it received last Friday from buyout firm Apollo Global Management LLC.

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Apollo’s offer values Arconic at between $23 and $24 per share, one of the sources familiar with the matter said. Arconic shares ended trading on Monday at $21.45. Arconic had $6.3 billion in total debt and cash of $1.46 billion as of the end of June.

Another bidding group, comprising buyout firms like Blackstone Group LP, Carlyle Group LP, Onex Corp and Canada Pension Plan Investment Board, is yet to submit an offer for Arconic, the sources said. But it is not clear whether the group will submit a bid to rival Apollo’s in the coming days or not.

Arconic, on the other hand, has also not set any firm bid deadline yet and no deal is imminent. However, the company is hoping to reach a decision on whether it will sell itself by the time it holds its investor day next month, according to the sources. It is not clear whether more bids from other parties will emerge.

Arconic, Apollo, Blackstone, Carlyle and Canada Pension Plan Investment Board declined to comment, while Onex did not immediately respond to a request for comment.

Arconic’s aluminium products are used around the world by aerospace, automotive, commercial transportation and packaging manufacturers.

In February, Arconic said it would carry out a strategy and portfolio review, while in August, it announced it was considering selling its building and construction systems unit, which makes facades, windows and framing products.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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