Norways Hydro makes $240 million bid for Polish recycler Alumetal

div classBodysc17zpet90 cdBBJodivpOSLO Reuters – Norwegian metals maker Norsk Hydro said on Friday it had offered to buy Polish recycler Alumetal in an allcash transaction for 1.07 billion zloty 240.4 million, in an attempt to strengthen its recycling profile in Europe.p

pHydro said two members of Alumetals supervisory board and all members of the management board had already agreed to the takeover proposal, giving the Norwegian company a stake of 39 so far.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“With the transaction, Hydro will strengthen its recycling position in Europe and widen its product offering in the lowcarbon and scrapbased foundry alloy market,” the Oslobased company said in a statement.p

pThe offer of 68.4 zloty per share represents a 4.7 premium over Thursday‘s closing price, but is still below last month’s alltime high for Alumetals stock of 77.8 zloty.p

pThe Polish firm has an annual production capacity of 275,000 tons of aluminium from its plants, three of which are in Poland and one in Hungary, Hydro said.p

pThe proposed transaction implies an enterprise value of approximately 1.33 billion zloty, based on Alumetals latest reported debt and dividend plans, the Norwegian firm added.p

p1 4.4514 zlotysp