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TK Aluminum Ltd. Announces Sale of French and German Subsidiaries

This Site:en.yinlu.net Source:en.yinlu.net Writer: Time:2007-09-02
HAMILTON, Bermuda, Aug. 31 /CNW/ - TK Aluminum Ltd., the indirect parentof Teksid Aluminum Luxembourg S.a r.l., S.C.A. ("Teksid Luxembourg"),announced today that on August 20, 2007 Teksid Luxembourg entered into apurchase agreement (the "Purchase Agreement") to sell its equity interests inTK Aluminum France S.A.S. and Teksid Deutschland GmbH to Bavariaring 0906 GmbH("Bavariaring"), an affiliate of BAVARIA Industriekapital AG ("Bavaria AG").TK Aluminum France S.A.S. is the parent of Teksid France S.A.S., Fonderie duPoitou Aluminium S.A.S., Fonderie Aluminium Cleon S.A.S. and MetaltempleS.A.S. and as a result of the transactions contemplated by the PurchaseAgreement, such subsidiaries would be indirectly sold to Bavariaring.

The parties have not disclosed the financial terms of the PurchaseAgreement at this time. Pursuant to the Purchase Agreement and subject tocertain conditions, Bavariaring will share operational control of the acquiredcompanies in the period prior to the closing of the transactions contemplatedby the Purchase Agreement.

The Purchase Agreement is subject to termination by Teksid Luxembourg inthe event the Supervisory Board of Bavaria AG does not authorize and approvecertain aspects of the transactions contemplated by the Purchase Agreement onor before September 15, 2007. The Purchase Agreement is also subject tocertain conditions to closing, including receipt by Teksid Luxembourg ofconsent of at least a majority in principal amount of Teksid Luxembourg's11 3/8 Senior Notes and may be terminated by Teksid Luxembourg in the eventsuch consent is not received.

There can be no assurance that the Bavaria AG Supervisory Board willauthorize and approve certain aspects of the transactions contemplated by thePurchase Agreement on or before September 15, 2007, that Teksid Luxembourgwill not terminate the Purchase Agreement in the event that the Bavaria AGSupervisory Board does not authorize and approve such aspects of thetransactions on or before September 15, 2007, that the conditions to thePurchase Agreement will be satisfied or that the sale of the acquiredcompanies contemplated thereby will be consummated.

For further information

please contact Florence Delpeyrou at+33-(0)1-53-53-41-56 or email

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