The Norwegian Government positive to participation in rights issue in Norsk Hydro ASA
Today, Norsk Hydro ASA announced that it has signed an agreement with Vale S.A. to acquire Vale’s aluminium assets. The transaction is planned to be supported by a rights issue of about NOK 10 billion. The Norwegian Government is, under certain conditions, positive to participate in the rights issue with its pro rata share.
– Hydro is a leader in its industry and among the largest Norwegian companies. The government supports investments which ensure continued industrial growth in the company. We think a participation in the rights issue will be a good investment for the Norwegian state, says Trond Giske, Minister of Trade and Industry.
– We have stated in our ownership policy documents that the state has commercial objectives with its ownership in Hydro, but also an objective to ensure that head office functions remain in Norway. The government believes that the state should have a large ownership interest in Hydro. The transaction will dilute the state’s holding down towards 34 per cent. The state’s ambition in the longer term will be to bring its holding up towards 40 per cent.
Participation in the rights issue is based on the following conditions: Parliamentary approval, dilution limited to 34 per cent, that the terms of the issue are acceptable and commercial, and that no new material information is revealed before closing.
Source: Ministry of Trade and Industry