PARIS (Reuters) – Mining group Eramet said on Tuesday it has signed a memorandum of understanding to sell alloys maker Aubert & Duval (A&D) to an Airbus, Safran and Tikehau Ace Capital consortium, as it pursues a focus on mining activities.
The planned deal, which the parties expect to complete before the end of the year, is based on an enterprise value of 95 million euros ($107.3 million), Eramet said in a statement.
Eramet shares fell around 4% at the opening in Paris, before recovering some ground to trade slightly lower.
The company launched a strategic review of A&D, which supplies specialist metal alloys for the aeronautics industry, in mid-2020, and has reportedly been in talks with the Airbus-Safran-Tikehau consortium for over a year.
The deal will see the French state hold a golden share relating to certain A&D assets deemed strategic, Eramet said.
An estimated negative accounting impact of 340 million euros will be recognised in its 2021 results, but there will be no impact on group debt as of end-2021, Eramet added.
In a separate statement, Airbus, Safran and Tikehau said the planned acquisition, in which they would have equal ownership rights, would allow them to secure strategic supply chain materials for civil and military aircraft and engine programmes.
($1 = 0.8850 euros)
(Reporting by Gus Trompiz; Editing by Jan Harvey)
