OSLO, Feb 13 (Reuters) - Norway's Elkem said on Friday it has agreed to sell the majority of its Silicones division to its biggest owner, China's Bluestar, and that the Chinese company would cease to
Elkem to Sell Majority of Silicones Division to Bluestar for $1 Billion
Elkem's Strategic Business Move
OSLO, Feb 13 (Reuters) - Norway's Elkem said on Friday it has agreed to sell the majority of its Silicones division to its biggest owner, China's Bluestar, and that the Chinese company would cease to be a shareholder in the Norwegian group following the transaction.
Details of the Transaction
In return for taking over the Silicones unit, Bluestar will cancel all its 338.3 million shares in Elkem, corresponding to 52.9% of the group's capital, valued at 9.77 billion Norwegian crowns ($1.02 billion) at Wednesday's closing share price.
Future Plans for Elkem
"By divesting the majority of the Silicones division, we are simplifying our business, sharpening our strategic focus and allocating capital where we see strong long-term growth opportunities," Elkem CEO Helge Aasen said in a statement.
Following the transaction, Elkem plans to raise 1.5 billion crowns from other shareholders, it said.
($1 = 9.5639 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Louise Rasmussen)
