Hydro reduces ownership in Vianode

Rhea-AI Summary

Hydro has announced a reduction in its ownership stake in Vianode, a Norwegian synthetic graphite producer, from 30% to 19.9%. The company canceled a put option with private equity fund Altor and sold 10.1% of its shares. A mutual put/call option for the remaining 19.9% stake will be exercised by February 28, 2025. Hydro will step down from Vianode's Board of Directors and has decided not to provide further capital to support Vianode's growth, instead focusing on its own strategic priorities. The company reports impairments of NOK 956 million related to Vianode investments in Q3, with NOK 581 million impacting reported EBITDA and NOK 375 million affecting Finance expense.

Positive

• None.

Negative

• Reduction in strategic investment ownership from 30% to 19.9%
• NOK 956 million in impairments taken in Q3
• NOK 581 million negative impact on reported EBITDA
• NOK 375 million impact on Finance expense
• Loss of board representation in Vianode

Hydro has decided to reduce its ownership in synthetic graphite producer Vianode, based in Norway, from 30 to 19.9 percent.

On September 6, the private equity fund Altor exercised a put option requiring Hydro to acquire an additional 20 percent of Vianode. This transaction has not been executed.

Hydro has agreed with Altor to cancel the put option and has further sold 10.1 percent of Vianode to Altor. Hydro's remaining shareholding is 19.9 percent and Hydro will step down from the Board of Directors of Vianode.

As part of the agreement, Hydro and Altor have a mutual put/call option for the remaining 19.9 percent of shares, which will be exercised no later than February 28, 2025.

Vianode is on a growth journey to supply the battery industry with much needed low-carbon graphite. However, Hydro has decided to allocate its capital towards projects supporting its strategic priorities towards 2030 and will therefore no longer provide further capital to Vianode.

Impairments of NOK 956 million of investments in Vianode are taken in the third quarter, with NOK 581 million impacting reported EBITDA and shareholder loan in Vianode of NOK 375 million is impacting Finance expense.

Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com

Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com

FAQ

What is Hydro's new ownership percentage in Vianode?

Hydro has reduced its ownership stake in Vianode from 30% to 19.9%.

When will the mutual put/call option for Hydro's remaining Vianode shares be exercised?

The mutual put/call option for the remaining 19.9% shares will be exercised no later than February 28, 2025.

How much is the total impairment Hydro is taking on Vianode investments in Q3?

Hydro is taking total impairments of NOK 956 million on Vianode investments in the third quarter.

Why is Hydro reducing its stake in Vianode?

Hydro is reducing its stake to allocate capital towards projects supporting its strategic priorities towards 2030, choosing not to provide further capital to Vianode.