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Elkem announces sale of majority stake in Silicones division to Bluestar
Elkem ASA has announced a definitive agreement to sell the majority of its Silicones division to Bluestar, its largest shareholder. The transaction will be settled by redeeming Bluestar’s 338,338,536 shares in Elkem, a move that will leave Bluestar with no remaining stake in the company.
This strategic decision follows a comprehensive review initiated earlier in 2025, aiming to optimise Elkem’s portfolio and bolster long-term growth. The sale, referred to as the ‘Contemplated Transaction’, encompasses all assets, rights, liabilities, and employees associated with the Silicones division. Geographically, the division’s operations span multiple regions, with the Asia-Pacific market being the largest. The transaction is contingent upon approval at an extraordinary general meeting (EGM), scheduled for 9 March 2026, as well as lender and regulatory consents. If all conditions are met, the transaction is expected to close by May 2026.
Strategic focus on metals and materials
Elkem’s retained Silicones assets, located in China, France, and India, will continue operations under separate arrangements, including a five-year supply agreement for upstream silicones. The company plans to explore strategic alternatives for these retained assets while pivoting toward its core metals and materials segments. The divestment aligns with Elkem’s ambition to streamline its operations, reduce complexity, and focus on high-growth areas such as silicon products and carbon solutions. CEO Helge Aasen highlighted, “By divesting the majority of the Silicones division, we are simplifying our business and sharpening our strategic focus. This positions us for growth opportunities while enhancing shareholder value.”
Financial restructuring and future outlook
The transaction is expected to improve Elkem’s financial profile by reducing capital intensity and enhancing cash flow generation. A planned NOK 1,500 million equity capital raise, fully underwritten by key shareholders, will further strengthen the company’s balance sheet and support future investments.
Post-transaction, Elkem aims to solidify its position as a leading player in metals and materials, supplying critical components for the green and digital transitions. The company will maintain its international presence with production facilities across five continents and continue investing in R&D to meet evolving market demands. According to the timeline provided, the transaction will proceed through multiple stages, including lender approvals and creditor notice periods, concluding by early May 2026. The move represents a pivotal milestone in Elkem’s strategy to optimise capital allocation and pursue value-accretive expansion opportunities within its core sectors.
