#Norway #Oslo #Elkem #Silicones #BlueStar

Elkem to Sell Majority Stake in Silicones Division to Bluestar

Elkem ASA, a leading provider of advanced silicon-based materials, has made a pivotal announcement regarding the sale of a significant portion of its Silicones division to Bluestar. This strategic move aims to simplify Elkem's operations and sharpen its focus on becoming a globally leading entity in metals and materials.

Transaction Highlights

The transaction is designed as a share purchase agreement where Bluestar will acquire the majority of Elkem's Silicones division, valued at an impressive portion of Elkem's assets. This transition will involve the redemption of Bluestar's 338,338,536 shares in Elkem, which represents 52.9% of the company's share capital. Notably, the settlement will exclude any cash payments from either party.

Strategic Rationale for the Sale

Elkem's decision to sell a substantial part of its Silicones division is rooted in a comprehensive strategic review initiated in early 2025. The firm aims to delegate capital towards areas with stronger long-term growth prospects while also benefiting shareholders. Bluestar, having a rich history as Elkem's largest shareholder and previous owner of segments within the Silicones assets, is well-positioned to nurture this division's growth.

“By divesting the majority of the Silicones division, we aim to simplify our operations and enhance strategic focus,” said Elkem CEO Helge Aasen. The transaction is projected to catalyze growth in both the Silicones division and Elkem's metals and materials sectors.

Conditions for Approval

The completion of this significant transaction is contingent upon several conditions, including the approval of Elkem's general meeting, which is scheduled for March 9, 2026. Several shareholders who own approximately 30% of Elkem’s eligible voting shares have already pledged their support for this transaction, indicating robust backing for the initiative.

Anticipated Benefits

Post-transaction, Elkem intends to strengthen its financial position by reallocating capital effectively across the remaining segments. The move is expected to result in improved cash flow and reduced complexity in management. This corporate reshuffle positions Elkem as a leaner, more focused player in the metals and materials market, capable of pursuing promising growth opportunities driven by innovation.

Looking Ahead

With the anticipated completion of the transaction by May 2026, Elkem is poised to continue as a key player within the silicon and metals markets, ensuring a solid foundation for future growth. The company’s comprehensive approach aims at balancing operational efficiency with strategic investments, underscoring its commitment to adapting to evolving market demands.

In conclusion, Elkem's sale of the Silicones division to Bluestar marks a significant strategic pivot. This decision reflects not only the company’s readiness to adapt and evolve but also its dedication to maximizing shareholder value and promoting long-term growth across its business segments. Elkem remains committed to utilizing its core strengths to craft innovative solutions for a more sustainable future.