Hindalco considers equity rights issuance

NEW DELHI: Hindalco Industries, a flagship company of Aditya Birla Group, on Friday said it may consider a comprehensive plan including an equity rights issuance to finance the loan taken to acquire leading aluminium-rolling company Novelis.

In a filing to Bombay Stock Exchange, Hindalco said its board of directors will consider "a comprehensive financing plan for take out of the existing bridge financing for acquisition of Novelis," on June 20 meeting.

"This take out financing must be in place by November 10, 2008. The financing plan will evaluate various options including an equity rights issuance," Hindalco said.

Hindalco, India's largest aluminium producer had in February, last year, entered into a definitive agreement to acquire Novelis in an all cash transaction, which valued the target company at USD 6 billion.