Boulogne-Billancourt, 22 October 2018 – After the decision of the High Court of Strasbourg taken on January 29, to attribute all assets of Ascometal to Schmolz +
Bickenbach, with the exception of the Ascoval steel mill, a period was granted to allow a potential buyer to propose a solution ensuring a sustainable future for this plant.
Within this context, Altifort approached the Group to subsidize its takeover bid for Ascoval to the amount of € 51m. After close examination, Vallourec communicated to the judicial administrators, in charge of the procedure, that it is not possible to accede to this request. To do so, would be contrary to the Group's interests, since Altifort would oblige Vallourec to purchase steel at prices more than 30% higher than other sources of supply, putting at risk the Group's French and European activities, which have been making considerable efforts over recent years in an extremely difficult market context. The same goes for the investment grants requested by Altifort.
In addition, review of the acquisition plan shows that the project's funding requirements have been largely undervalued and are only funded to a small extent by Altifort. The remainder of the necessary financing, which goes well beyond the amounts requested from Vallourec, was to come from hypothetical lenders and investors.
Vallourec is fully aware of the dismay of Ascoval's employees faced with the risk of plant shutdown. If this were to be the case, the Group, which has made every effort for nearly two years to promote the search for a sustainable solution for the steel mill, would mobilize again to promote their re-employment, according to the needs and opportunities of its activities installed in Hauts de France, in connection with the competent authorities.
Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec's pioneering spirit and cutting-edge R&D open new technological frontiers. With close to 19,500 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive, and smart tubular solutions to make every project possible.
Listed on Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and eligible for the Deferred Settlement System (SRD), Vallourec is included in the following indexes: SBF 120 and Next 150.
In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R2094, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.
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