Amsterdam, 22 December 2014 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce the signing of a definitive agreement to sell a 40% equity interest in AMG Graphit Kropfmühl GmbH (“AMG Graphite”) by way of a capital increase in combination with a 10.33% equity interest in Bogala Graphite Lanka PLC (“Bogala”) to Alterna Capital Partners (“Alterna”) for a combined cash price of $38m. The transaction is expected to close during the first quarter of 2015 and is subject to certain closing conditions including regulatory approvals.
The transaction is in line with AMG’s strategy to expand its critical materials business while, at the same time, continuing to reduce net debt. Dr. Heinz Schimmelbusch, Chief Executive Officer of AMG, stated, “Natural Graphite has a high growth potential and we have to reposition our global value chain to benefit from this opportunity. We are pleased to have found a partner who shares our views and values”.
Roger Miller, Managing Partner of Alterna, stated, “We are excited to partner with AMG and their management team to progress AMG Graphite’s growth strategy. We believe AMG Graphite has demonstrated a strong track record of providing customers with high quality products and services and the Company is well positioned for continued growth”.
AMG Graphite is one of the world’s leading graphite producing and refining companies, with mining activities in Germany, Africa and Asia. AMG Graphite has more than 140 years of experience producing the highest quality natural graphite products through its own source mines and vertically integrated production facilities.
Bogala Graphite Lanka PLC produces high quality natural vein graphite from its mine in Sri Lanka. With a unique crystalline structure, vein graphite outperforms other types of macro crystalline graphite found elsewhere in the world. With an 80% shareholding, AMG Graphite will remain the majority shareholder in Bogala Graphite Lanka PLC.
AMG is a diversified “critical materials” company driven by global CO2 reduction trends. AMG produces highly engineered specialty metals and minerals products and provides related vacuum furnace systems and services to the aerospace, infrastructure, energy, and specialty metals & chemicals end markets.
AMG produces aluminum master alloys and powders, titanium alloys and coatings, chromium metal, ferrovanadium, antimony, tantalum, niobium, silicon metal and natural graphite. AMG Engineering designs and produces vacuum furnace equipment and systems used to upgrade specialty metals and alloys for the aerospace, automotive, infrastructure, and energy markets.
With over 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil, Turkey and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
About Alterna Capital Partners
Alterna invests in Core Capital Assets for the transportation, industrial and energy sectors. The firm looks for income producing assets in developed economies that are essential for expansion and maintenance of productive operations and have the following characteristics: Economically vital, Long useful life, Stable technology.
The founders of Alterna are an accomplished team that combines extensive asset and industry knowledge with strong investment experience. The team has more than 100 years of aggregate investment experience, having successfully invested approximately $3 billion in Core Capital Assets.
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 5804
Vice President of Investor Relations
Certain statements in this press release are not historical facts and are “forward looking”. Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.