Nordic Aluminium board committee recommends Lival's buyout bid

Finnish aluminum products and components producer Nordic Aluminium Plc on Friday said that a special committee of independent directors at the company had unanimously recommended a EUR30.00 (USD37.06) per share buyout bid by its major shareholder, local shop lighting manufacturer Oy Lival Ab.

The committee, consisting of the board of directors' independent members Hans Jonasson and Nina Ehrnrooth, was set up last Friday upon the announcement of the offer. Lival, which is owned by Nordic Aluminium's chairman of the board of directors Stig Lival-Lindstrom, holds a 71.19% stake in the target. Together, Lival and Lival-Lindstrom own 73.94% of Nordic Aluminium. The offer is conditional on the buyer securing an ownership level of over 90% of Nordic Aluminium's stock.

The bid, which will be funded by available cash resources, represents a premium of 6% to the target's closing price on 9 August, the day before the announcement of the bid, and an 11% premium to the average weighted price within the last three months, Nordic Aluminium said when unveiling the offer.

The acceptance period will start on 20 August and run till 14 September, subject to extensions. Varma Mutual Pension Insurance Company, which owns 6% of the target's stock, has pledged to tender its shares. In case of a successful bid, Lival will delist Nordic Aluminium from the Helsinki Stock Exchange, in a move that, according to the bidder, would allow the company to focus on its business development and execution of its strategy without being burdened by quarterly reporting and administrative expenses.