Metalcorp Group publishes investor update

Metalcorp Group publishes investor update

Luxembourg, 20 March 2023 – Metalcorp Group would like to update investors on the continuing review of strategic alternatives in respect of certain investments and to its current capital structure as well as the status of certain actions undertaken by it in connection therewith.

Corporate Reorganisation

Metalcorp Group has undergone a corporate reorganisation to create two Sub-Groups to better reflect the distinct business characteristics that exist within Metalcorp Group. Following the corporate reorganisation, the European Aluminium recycling production assets, bulk and ferrous trading (Steelcom) and the investment in Italiana Coke are consolidated under a new holding entity below the Company (the “Aluminium and Bulk and Ferrous Sub-Group”), while the Metals & Concentrates Business, which now also include the Guinea mining operations, is consolidated below the Company (“Metals & Concentrates Sub-Group”). There will be no change to the business and operating activities of the Metalcorp Group which have continued to see strong business momentum.

Review of Strategic Alternatives

Immediately following the announcement on 14 February 2023, the Company initiated a process to contact a number of strategic and financial investors regarding their potential interest in an acquisition of the Aluminium and Bulk and Ferrous Sub-Group and the terms upon which they would consider a transaction.

All interested parties were invited to provide expressions of interest by 17 March 2023. The Company is currently considering the expressions of interest received.

Furthermore, the Company also initiated a process to contact a number of debt investors regarding their potential interest in providing financing to the Aluminium and Bulk and Ferrous Sub-Group and the terms upon which they would consider a financing. The Company has received certain expressions of interest which it is currently reviewing.

Whilst Metalcorp Group continues to explore all available alternatives, a transaction may involve the sale of the Aluminium and Bulk and Ferrous Sub-Group and / or a financing to that Sub-Group.

Ad Hoc Group Financing

In addition, the Company has continued its dialogue with certain holders (the “Ad Hoc Group”) of its 8.5% senior secured notes due 2026 who have indicated that they are willing to consider providing new money to the Metalcorp Group to support operational liquidity subject to various conditions and terms to be agreed. Metalcorp Group will continue the constructive dialogue with the Ad Hoc Group and its advisors.

Metalcorp Group preserves its right to advance any individual actionable alternative, or a combination thereof should circumstances necessitate doing so in the interests of preserving value for stakeholders, however, its present intention is to pursue alternatives on an accelerated basis to optimise the opportunity for a successful outcome.

The Company will provide further updates as this process develops.

About Metalcorp Group S.A.:
Metalcorp Group is a diversified global service provider in the metals and minerals industry including procurement, marketing, mining and processing of such products. The company’s divisions are aluminium, metals and concentrates, bulk and ferrous. The 2021/2026 bond (ISIN: DE000A3KRAP3) and the 2017/2023 bond (ISIN: DE000A19MDV0) are traded on the Open Market of Deutsche Börse AG (“Freiverkehr” of the Frankfurt Stock Exchange).

For further information:
Better Orange IR & HV AG
Frank Ostermair, Linh Chung
+49 89 8896906-25
metalcorp@better-orange.de

Metalcorp Group S.A.
Anouar Belli
+352 2799 0145 55
abelli@metalcorpgroup.com