May 24 2006
On 16 March 2006, Corus Group plc (Corus) and Aleris International Inc. (Aleris) announced that they had signed a Letter of Intent for the proposed acquisition by Aleris of Corus' downstream aluminium rolled products and extrusions businesses for a gross consideration of EUR 826m (£570m).
Following the completion of internal consultation and advice processes related to the transaction, Corus and Aleris are now pleased to confirm that they have entered into a definitive Share Purchase Agreement. The transaction remains subject to certain external regulatory clearances. Completion is anticipated in the third quarter of 2006.
The net cash proceeds, after deducting pension liabilities but excluding minority interests and net debt, would be approximately EUR 728m (£502m). These proceeds will be used to further strengthen both the Group's balance sheet and develop the carbon steel business. The transaction is not expected to have a material effect on the Group’s net assets.
In 2005, Corus' downstream aluminium rolled products and extrusions businesses generated a profit before taxation of EUR 47m (£32m). Gross assets related to these businesses, as at 1 January 2006, were EUR 1,120m (£772m). The management teams of these businesses are expected to transfer to Aleris.