Hydro scales back ownership in Vianode to 19.9%, cancels put option with Altor

Hydro has decided to reduce its stake in Vianode, a synthetic graphite producer based in Norway, from 30 per cent to 19.9 per cent. On September 6, private equity fund Altor exercised a put option requiring Hydro to buy an additional 20 per cent of Vianode.  However, this transaction did not proceed.

Instead, Hydro and Altor reached an agreement to cancel the put option, and Hydro subsequently sold 10.1 per cent of its shares in Vianode to Altor. As a result, Hydro now holds 19.9 per cent of Vianode and will be stepping down from its position on the company's Board of Directors.A put option is a financial contract that grants the buyer the right, but not the obligation, to sell a specified quantity of an asset at a set price, known as the strike price, within a predetermined time frame before the option's expiration date.

As part of the agreement, Hydro and Altor have established a mutual put/call option for Hydro's remaining 19.9 per cent stake in Vianode, which must be exercised by February 28, 2025. Vianode is positioned for growth, aiming to supply the battery industry with essential low-carbon graphite.

However, Hydro has chosen to redirect its capital toward projects that align with its strategic priorities for 2030 and, as a result, will not be providing further investment in Vianode. In the third quarter, Hydro recorded impairments totalling NOK 956 million related to its investments in Vianode. This includes a NOK 581 million impact on reported EBITDA and a NOK 375 million shareholder loan in Vianode affecting Finance expenses.