Hindalco Industries has reportedly decided to sell its Australian subsidiary Aditya Birla Minerals (ABML) by accepting the takeover bid of Metals X, a diversified resource company producing gold, tin and nickel. In its revised offer, Metals X will acquire 4.5 ABML shares by issuing one share of its own and further pay Australian $0.8 in cash for every ABML share held by the promoters.
Hindalco owns 51% in the Australian Securities Exchange-listed subsidiary. The deal values Aditya Birla Minerals shares at 32.9 cent each. The additional cash component is supported by a specific purpose loan of $25 million which is extended by Citibank.
Hindalco Industries is an industry leader in aluminium and copper. The company’s aluminium units across the country encompass the entire gamut of operations from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions, foils and alloy wheels, along with captive power plants and coal mines.
