AMG Advanced Metallurgical Group N.V. (AMG) has agreed to sell a 40% equity interest in AMG Graphit Kropfmühl GmbH and a 10.33% equity interest in Bogala Graphite Lanka PLC to Alterna Capital Partners 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 reported to be in line with AMG’s strategy to expand its critical materials business while at the same time continuing to reduce net debt. “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,” stated Dr Heinz Schimmelbusch, Chief Executive Officer of AMG.
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.