Ferroglobe announces the sale of Spanish hydro facilities with one ferroalloys plant to TPG Sixth Street Partners
- Company to divest 100% of subsidiary FerroAtlántica, S.A.U. the owner of ten hydroelectric facilities, with a combined capacity of 167 MW, and of the Cee-Dumbría ferroalloys plant.
- The transaction is a key milestone in
Ferroglobe'sstrategy of divesting non-core assets to strengthen its balance sheet.
- The transaction values FerroAtlántica S.A.U. at €170 million.
The assets owned by FerroAtlántica to be transferred in this transaction are ten hydroelectric power plants with a combined generating capacity of approximately 167 MW, and the Cee-Dumbría ferroalloys factory, all located in the province of A Coruña (
Simultaneously with this sale, the Company has signed a long-term tolling agreement with FerroAtlántica under which it will become the exclusive off-taker of its finished goods. In return for this exclusivity,
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The completion of the sale is subject, among other standard closing conditions, to competition clearance from the Spanish anti-trust commission (CNMC) and to the administrative authorization by the regional government of the early termination of the existing financial lease of the hydroelectric power plants (similar to authorizations granted by the same body for previous early cancellations in 2012 and 2002). No other administrative or regulatory approval is required.
Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys, and other ferroalloys serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.
This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will” and words of similar meaning or the negative thereof.
Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.
Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.
All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.
EVP – Investor Relations
Source: Ferroglobe PLC