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TK Aluminum Ltd. Announces Completion of the Sale of its Remaining Equity Interest in Nanjing Teksid Aluminum Foundry Co., Ltd. to Tenedora Nemak, S.A. de C.V.
CARMAGNOLA, Italy, June 28 /PRNewswire/ -- TK Aluminum Ltd. (the "Company"), the indirect parent of Teksid Aluminum
Luxembourg S.Ã r.l., S.C.A. ("Teksid Luxembourg"), announced today that on
June 27, 2007 its subsidiary Teksid Aluminum S.r.l. ("Teksid Italy")
completed the sale of its remaining 40% equity interest in Nanjing Teksid
Aluminum Foundry Co., Ltd. ("Nanjing Teksid") to Tenedora Nemak, S.A. de C.V.
("Nemak"), a subsidiary of ALFA, S.A.B. de C.V. ("ALFA"). Teksid Luxembourg
indirectly sold an additional 30% stake in Nanjing Teksid to Nemak on March
15, 2007. With the completion of the sale of this remaining interest in
Nanjing Teksid, the Company has consummated the sales contemplated by the
previously disclosed revised terms of the Nemak transaction.
Pursuant to the revised terms of the Nemak transaction, the aggregate
purchase price allocated to the sale of the Company's entire 70% interest in
Nanjing Teksid and receivables related thereto was approximately US$15.3
million in cash consideration plus the issuance of an additional 0.21% of
synthetic equity interest in the Nemak business (bringing the Company's total
synthetic equity interest in the Nemak business to 6.68%). At the closing of
the sale of the Company's 40% equity interest in Nanjing Teksid, the
Company's subsidiaries received aggregate net cash proceeds of approximately
US$14.8 million for the Company's entire 70% indirect interest in Nanjing
Teksid and certain related receivables, which aggregate net proceeds included
a payment of approximately US$1.9 million for Teksid Luxembourg's 30%
interest in Nanjing Teksid indirectly transferred to Nemak as part of the
initial closing on March 15, 2007 and approximately US$1.4 million related to
the purchase of a loan receivable from Teksid Luxembourg. In addition, at the
June 27th closing, Teksid Italy received an additional approximately US$1.7
million in cash related to the purchase of certain equipment used by Nanjing
Teksid from Teksid Italy, and Teksid Luxembourg received an additional
approximately US$1 million in cash as the result of the issuance of a loan by
ALFA. The aggregate cash proceeds were based on the purchase price allocation
and estimated withholding taxes as contemplated by the revised terms of the
Nemak transaction.
About Teksid Aluminum
Information about Teksid Aluminum is available on our website at
www.teksidaluminum.com.
