Hydro Lowers Ownership in Vianode
Hydro has made a strategic decision to decrease its ownership stake in Vianode, a synthetic graphite producer, from 30% to 19.9%. This change reflects Hydro's reallocation of capital towards projects that align with its strategic priorities.
Cancellation of the Put Option
Recently, the private equity fund Altor exercised a put option that would have required Hydro to acquire an additional 20% stake in Vianode. However, this transaction has not proceeded as planned. Hydro and Altor have agreed to cancel this put option.
Sale of Shares to Altor
As part of the revised agreement, Hydro has sold 10.1% of its shares in Vianode to Altor. Consequently, Hydro now holds a minority stake of 19.9% in the synthetic graphite producer and will withdraw from the Board of Directors of Vianode to streamline operations.
Future Options for Remaining Shares
The agreement between Hydro and Altor includes a mutual put/call option regarding the remaining 19.9% of shares in Vianode. This option is set to be exercised no later than February 28, 2025, allowing both parties to reassess their positions in the future.
Vianode's Growth Potential
Vianode is actively pursuing growth strategies to provide the battery industry with essential low-carbon graphite solutions. However, Hydro's decision reflects a shift in focus, prioritizing investments that align more closely with their business strategies and goals for 2030.
Financial Implications for Hydro
Hydro has reported significant impairments of NOK 956 million related to its investments in Vianode during the third quarter. These impairments have had a considerable effect on reported EBITDA, with NOK 581 million directly influencing financial results. Furthermore, a shareholder loan to Vianode of NOK 375 million has also impacted finance expenses, underscoring the financial considerations of this transaction.
Company Contacts
For investor inquiries, you can reach out to Martine Rambøl Hagen at +47 91708918 or via email at Martine.Rambol.Hagen@hydro.com. Additionally, for media inquiries, Halvor Molland is available at +47 92979797 or by emailing Halvor.Molland@hydro.com.
Frequently Asked Questions
Why did Hydro reduce its ownership in Vianode?
Hydro decided to reassess its capital allocation strategy and focus on projects that align with its longer-term goals.
What will happen to Vianode's growth plans?
Vianode continues to focus on supplying low-carbon graphite to the battery industry despite Hydro's reduced stake.
What financial impact did this change have on Hydro?
Hydro reported significant impairments related to Vianode, affecting both EBITDA and finance expenses in the recent quarter.
Are there future options for Hydro with Vianode?
Yes, Hydro and Altor have a mutual put/call option for the remaining shares, which is set to be exercised by February 2025.
How can I contact Hydro for more information?
You can reach Martine Rambøl Hagen for investor relations or Halvor Molland for media inquiries through the provided contact details.
