Capital Restructuring At Hindalco

Capital Restructuring at Hindalco

-Nikunj Barnwal

Agenda • Definition • Overview of the company

Definition:Altering the capital structure of a firm; in reaction to the changed business conditions, or as a means to fund the firm's growth plans

Overview of the Company • Established in 1958, it is world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia • Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt.Gordon copper mines in Australia, strengthened the company's position in value-added alumina, aluminium and copper products, with vertical integration through access to captive copper concentrates

Overview

Contd…

• On May 15, 2007, it acquired Novelis with Novelis shareholders receiving $44.93 per outstanding share of common stock. • Hindalco, through its wholly-owned subsidiary AV Metals Inc., acquired 75,415,536 common shares of Novelis, representing 100 percent of the issued and outstanding common shares. Immediately after closing, AV Metals Inc. transferred the common shares of Novelis to its wholly-owned subsidiary AV Aluminum Inc.

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