Solidium Oy supports the plan of Outokumpu Oyj to divest VDM and Terni remedy assets to ThyssenKrupp in exchange for the loan note of EUR 1.3 billion. As part of the transaction the balance sheet of Outokumpu would be strengthened through a rights issue of EUR 650 million and the lenders would be willing to extend the maturities of the existing facilities and grant a new loan facility.
The completion of the transaction is among others subject to competition authorities clearances, which are conditional upon ThyssenKrupp selling all its shares in Outokumpu. To comply with this requirement Solidium and a group of institutional investors have conditionally committed to purchase all the shares owned by ThyssenKrupp and to subscribe for Outokumpu´s new shares in the rights issue. After the completion of the transaction, Solidium will hold approximately 29.9 per cent of the outstanding shares in Outokumpu (currently 21.8 per cent). In connection with the transaction, Solidium has committed to subscribe for Outokumpu’s new shares in the rights issue for its total entitlement (29.9 per cent) corresponding to up to approximately EUR 195 million, subject to the terms of the subscription commitment. Solidium’s holding of Outokumpu shares and votes will not exceed 29.9 per cent based on the subscription of shares according to the subscription commitment.
Solidium´s managing director Kari Järvinen comments: “This arrangement will significantly improve the financial position of Outokumpu. At the same time the challenging forced sale of Terni is resolved, which was a precondition for the Inoxum transaction from the competition authorities. In the coming years, Outokumpu´s profitability should improve through the completion of the ferrochrome investment, the ramp-up of the Calvert production plant, the realization of synergies from the Inoxum-acquisition and the on-going efficiency programmes.”
Outokumpu has published more detailed information about the transaction.
Outokumpu is the world’s leading producer of stainless steel and high performance alloys. The most significant production plants are in Tornio, Finland, and in Germany, the United States, Sweden, the United Kingdom, Mexico and China. Outokumpu is also the owner of the Kemi chromium mine. Outokumpu is a leader in environmental performance in the industrial sector. The company, headquartered in Espoo, employs more than 15,000 professionals in more than 40 countries of which 2,500 are based in Finland. The shares are listed in the NASDAQ OMX Helsinki.
Further information: Managing director, Kari Järvinen, Solidium Oy, tel. +358 40 548 3995.
Solidium is a limited company wholly owned by the State of Finland. Its mission is to strengthen and stabilise Finnish ownership in nationally important companies and increase the value of its holdings in the long run. Investment activities are based on financial analysis. The core of Solidium’s investment strategy is proper, value enhancing asset management of the current holdings. Through its stakes, Solidium is a minority owner in eleven listed companies: Elisa, Kemira, Metso, Outokumpu, Outotec, Rautaruukki, Sampo, Stora Enso, Talvivaara Mining Company, TeliaSonera and Tieto. The market value of Solidium’s investments is approximately EUR 8.0 billion at the date of this press release. Further information: www.solidium.fi.
