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Financial Times reported that Mr Sanjeev Gupta is negotiating with Glencore to refinance its European aluminum business debt to remain in control of one of his best assets. FT, citing people familiar with the matter, reported that Glencore is discussing refinancing more than USD 500 million in debt at Albans, Gupta’s aluminum business with assets in France and Belgium. Glencore’s move is due to a 25% surge in aluminum prices this year to over USD 2,500 per tonne as the global economy begins to recover from the pandemic. If Glencore could secure a supply of metals, the deal would benefit Glencore’s aluminum business and provide a pipeline that could be sold through its vast trading division.”
Sources added that “Glencore’s aluminum units, which have already purchased metal from Liberty, are operated by Mr Robin Scheiner. Bankers say he is keen on expanding his business and looking for potential deals. He met Gupta in Zurich this year, where they brainstormed many ideas, but they didn’t reach an agreement.”
In contrast to a previous proposal from US private equity firm American Industrial Partners, which was considering buying assets in an agreement with London-listed miners and commodities traders, Mr Gupta can remain the owner.
The contract with Glencore will repay some debt facilities throughout the Albans business. Dunkerk’s aluminum smelter has a USD 260 million loan and the Albans rolling mill in Duffle has an additional USD 59 million in debt.The business has USD 131 million in debt from a more risky holding company from BlackRock, with USD 73 million financing from Green Sill.
The Alvans crown gem is the largest Dunkirk smelter in Europe. Liberty acquired an annual 280,000 tonne plant from Rio Tinto for USD 500 million in 2018. According to the March GFG document, GFG estimated Alvance’s corporate value to exceed USD 1 billion, based on projected revenues of more than USD 150 million in 2021.
source：SteelGuru Business News
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