Asia Aluminum privatisation breaks ground on high leverage financing

Independent shareholders approve plan after rare guarantees from large institutional investors.
When minority shareholders of Asia Aluminum voted yes to a proposal to privatise the company last week, they also gave the green light for a highly leveraged financing exercise. This will raise the money needed to take the designer and manufacturer of aluminium extrusion products off the market.

Majority shareholder and chairman, Kwong Wui-chun, needed to raise $500 million to cover all the costs associated with the privatisation, which could have been tricky enough given that Asia Aluminum has a market cap of only about $350 million. But on top of that, it also had $450 million worth of debt on its books - in the form of a high yield bond issued in December...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222