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30 JANUARY 2015 WWW.LIVETRADINGNEWS.COM

Dubai to sell off German alumina products maker

1MINS READ
Dubai International Capital (DIC) is launching the sale of German alumina products maker Almatis as the fund seeks to reduce its liabilities in the wake of a debt restructuring, three people familiar with the deal said.

DIC has mandated Barclays to explore the options of the possible divestment, the people said on Thursday. Almatis is around 80 percent owned by DIC with a stake also held by Blackstone unit GSO Capital Partners.

The company had earnings before interest, tax, depreciation and amortization (EBITDA) of around 100 million in 2014, DIC Chief Executive David Smoot said last year, without giving an expected valuation for the firm.

Listed aluminum companies trade at an average of 6.8 times their expected EBITDA. Groups which like Almatis specialize in premium alumina products such as Vesuvius, Albermarle and Imerys trade at a slightly higher average multiple of 7.5.

If valued at a similar multiple, Almatis could bring in more than 750 million in a potential sale.


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