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Corporate
Aluminium plant sold
TK Aluminum Ltd. (the "Company"), the indirect parent of Teksid Aluminum Luxembourg S.a.r.l., S.C.A., announced today that on April 11, 2007 it completed the sale of its subsidiary Teksid Aluminum Poland Sp.z o.o ("Teksid Poland") to Tenedora Nemak, S.A. de C.V. ("Nemak"), a subsidiary of ALFA, S.A.B. de C.V. ("ALFA"). Pursuant to the previously disclosed revised terms of the Nemak transaction, the Company remains obligated to sell its remaining 40% equity interest in its Chinese joint venture.Pursuant to the revised terms of the Nemak transaction, the aggregate purchase price allocated to the sale of Teksid Poland was approximately $56.1 million in cash consideration plus the issuance of an additional 0.83% synthetic equity interest in the Nemak business. As detailed in the Attachment to this press release, the aggregate cash proceeds received by the Company at closing in connection with the sale of Teksid Poland were approximately $29.9 million plus $3 million as the result of the issuance of a loan by ALFA, prior to the deduction of a contingency reserve and other amounts permitted in accordance with the supplemental indenture, effective as of March 15, 2007 (the “Supplemental Indenture”), governing the Company’s outstanding 11 3/8% Senior Notes due 2011. Pursuant to the terms of the Supplemental Indenture, the Company is required to commence a tender offer with certain of the cash proceeds from the sale of Teksid Poland not later than 30 days after consummation of such sale.
