Elkem to sell majority of Silicones division to Bluestar via share redemption, streamlining operations and strengthening financial focus.
Elkem ASA has announced that it has signed a definitive agreement to divest the majority of its Silicones division to Bluestar. The transaction will be executed through the redemption of all 338,338,536 Elkem shares currently held by Bluestar via Bluestar Elkem International Co. Ltd. S.A. Once completed, Bluestar will no longer retain any ownership stake in Elkem.
This agreement follows Elkem’s previously disclosed strategic review of the Silicones division, first announced in January 2025, and the subsequent launch of an exclusive sales process in September 2025. After evaluating multiple strategic alternatives, Elkem’s Board concluded that the share purchase agreement with Bluestar represents the most advantageous solution for both the Silicones business and Elkem’s broader shareholder base.
Under the terms of the transaction, Bluestar will acquire the majority of the Silicones division’s assets, rights, liabilities, and employees within the defined transaction perimeter. The consideration will be settled entirely through the cancellation of Bluestar’s existing Elkem shares, with no cash payment involved from either side. Upon completion, Bluestar’s representatives will step down from Elkem’s Board of Directors and nomination committee.
Elkem’s leadership emphasized that the divestment aligns with its long-term ambition to streamline operations and sharpen strategic focus. By separating most of the Silicones division, the company aims to reposition itself as a focused, pure-play metals and materials producer. The retained portfolio will consist of Silicon Products, Carbon Solutions, and certain Silicones assets not included in the sale—namely Yongdeng (Silicon Metal China), Roussillon in France, and Chakan in India. For Roussillon, Elkem has secured a five-year upstream supply agreement to ensure continued operational viability.
The transaction remains subject to approval at an extraordinary general meeting (EGM) scheduled for 9 March 2026, as well as lender consents and other customary closing conditions. Several major shareholders—including Folketrygdfondet, Must Invest, DNB Asset Management, Nordea Investment Management, and Perestroika—have pre-committed their support, representing approximately 30% of eligible voting shares for the share purchase agreement. Additionally, 67% of eligible shareholders have committed to vote in favor of the share redemption.
To reinforce its financial position post-transaction, Elkem plans to raise NOK 1.5 billion in new equity, fully underwritten by the aforementioned shareholders, subject to market conditions. The company also anticipates refinancing certain debt facilities. Following completion, Elkem’s net interest-bearing debt is expected to be approximately NOK 9.8 billion before the contemplated equity raise.
Strategically, the divestment is expected to reduce complexity, lower capital intensity, enhance cash flow generation, and improve deleveraging capacity. Elkem intends to redeploy capital toward organic and inorganic growth opportunities within its core metals and materials segments. Management highlighted that the streamlined structure will support stronger financial resilience, improved operational focus, and greater flexibility to pursue value-accretive expansion in markets linked to green and digital transitions.
Closing of the transaction is anticipated by late April or early May 2026, subject to all approvals being secured.
