Elkem to Sell Majority of Silicones Division to Bluestar

Transaction Overview

Elkem ASA has agreed to sell the majority of its Silicones division to Bluestar. The transaction will be settled through the redemption of Bluestar's 338,338,536 shares in Elkem, representing 52.9% of the company. No cash payments will be involved in the settlement.

Strategic Goals

This transaction aligns with the long-term strategic goals of both Elkem and Bluestar, focusing on operations and ownership. Bluestar, as Elkem's largest shareholder and former owner of parts of the Silicones assets, aims to strengthen its position in the silicones value chain.

Approval and Support

The transaction is subject to approval by Elkem's shareholders at an extraordinary general meeting (EGM) scheduled for 9 March 2026. It also requires waivers and approvals from lenders and other customary conditions. Key shareholders, including Folketrygdfondet, Must Invest, DNB Asset Management, Nordea Investment Management, and Perestroika, have pre-committed their support for the transaction and underwritten a NOK 1,500 million equity capital raise.

Timeline

The transaction is expected to close by May 2026, pending the satisfaction or waiver of all closing conditions. Bluestar is entitled to vote on the share redemption and has committed to supporting it, with shareholders holding 67% of the eligible share capital also agreeing to vote in favor.