Potential sale of the Chinese Division of Vimetco N.V.Mon, 10/31/2016
Amsterdam, 31 October, 2016 – the Board of Directors of Vimetco N.V. (“Vimetco” or the “Company”) (LSE: VICO) has determined that, in the interests of the Company and its stakeholders as a whole, it will maintain its focus on its operations in China with a view to continuing its efforts to improve the financial performance of the Chinese Division. It has recently been made aware of continued positive relations in China among its Chinese operations, regulatory authorities and finance providers targeted at improving financial performance. Against these positive developments, and in order that the Company's stewardship continues to support such relations, the Board of Directors has decided to not pursue the discussions instigated by the potential investor to buy the Chinese operations (as announced on 17 October). As an alternative, the Board will extend discussions to such investor by way of its potential joint participation in Vimetco’s Chinese operations. The aim of these discussions will be to define a framework for further possible cooperation with this investor and to test the willingness of the potential investor to participate in investments focused on significant financial and technological improvements to the Chinese Division of the Company.
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Vimetco N.V. is a global, vertically integrated producer of primary and processed aluminium products with production assets in China, Romania and Sierra Leone, and a holding company in The Netherlands. Vimetco N.V. controls annual production capacities of up to one million tonnes of electrolytic aluminium, 340,000 tonnes of processed aluminium products, 600,000 tonnes of alumina, 1.7 million tonnes of bauxite, 2.25 million tonnes of coal, 3 x 300 MW of electricity and 318,000 tonnes of baked anodes per year. Vimetco’s global depositary receipts are listed on the London Stock Exchange (LSE: VICO).
Certain statements in this document are not historical facts and are "forward looking". Forward looking statements include statements concerning the Company's plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, its competitive strengths and weaknesses, plans or goals relating to development projects, financial position and future operations and development, its business strategy and the trends the Company anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward looking statements. The Company does not intend and the Company does not assume any obligation to update any forward looking statement contained herein, other than as required by applicable law.