11 DECEMBER 2011Business Standard
Hindalco's Novelis to spend Rs 1,820 cr on Korea deal
Edited by : AL CIRCLE
1 min read
Atlanta-based Novelis Inc, part of the Aditya Birla group’s Hindalco Industries, Asia’s largest integrated aluminium and copper producer, has raised debt of $225 million (Rs 1,170 crore) to complete the purchase of its Korean subsidiary. It will pay $125 million (Rs 650 crore) cash to seal the deal.
The stake purchase of 31.2 percent in Novelis Korea will raise Novelis Inc’s holding to nearly 100 percent. Novelis is the world’s largest recycler of aluminium cans used by beverage companies. The Korean subsidiary will service the Asian and North African markets.
"Our decision to buy out the minority shareholders in Novelis Korea represents another key step in Novelis' strategy to prepare for future growth in Asia," said Phil Martens, president and chief executive of Novelis.
Part of its capital expenditure is happening in its recycling initiatives across its plants.
In Asia, apart from the 31.2 per cent stake to make Novelis Korea a complete Novelis subsidiary, the company is also spending $400 million (Rs 2,080 crore) in its aluminium rolling and recycling plants.
The stake purchase of 31.2 percent in Novelis Korea will raise Novelis Inc’s holding to nearly 100 percent. Novelis is the world’s largest recycler of aluminium cans used by beverage companies. The Korean subsidiary will service the Asian and North African markets.
"Our decision to buy out the minority shareholders in Novelis Korea represents another key step in Novelis' strategy to prepare for future growth in Asia," said Phil Martens, president and chief executive of Novelis.
Part of its capital expenditure is happening in its recycling initiatives across its plants.
In Asia, apart from the 31.2 per cent stake to make Novelis Korea a complete Novelis subsidiary, the company is also spending $400 million (Rs 2,080 crore) in its aluminium rolling and recycling plants.
Previous article
Recycling's new page
Next articleRecycling will help both disability service and the environment this Christmas
Grow with
AL Circle
