Novelis Inc. announced recently that at a special meeting of shareholders held in Atlanta, Ga., its shareholders voted to approve the company's acquisition by Hindalco Industries Limited (BSE: HINDALCO). Approximately 99.8 percent of the votes cast by shareholders were in favor of the transaction.
Under the terms of the transaction, Hindalco, through its subsidiary AV Metals Inc., will acquire Novelis for $44.93 per common share in cash. Total enterprise value is estimated at $6 billion, including debt. Upon completion of the arrangement, Novelis will become a subsidiary of Hindalco.
Hindalco and Novelis have received all required regulatory consents which are a condition to the completion of the transaction. The arrangement remains subject to final court approval under Canadian law. Novelis expects the transaction to be completed on May 15, 2007.