Novelis Inc announced that it has completed the financing for its acquisition of the outstanding minority interest in its Korean subsidiary.

Novelis previously announced it would purchase 31.2% of the outstanding shares in its Korean subsidiary for USD 350 million raising its ownership to more than 99%. It has borrowed USD 225 million through a secured term loan and plans to fund the remaining purchase price with existing liquidity sources. The new term loan was borrowed under and will have the same terms as the Company's existing USD 1.5 billion term loan facility.

Mr Phil Martens president and CEO of Novelis said that "Our decision to buy out the minority shareholders in Novelis Korea represents another key step in Novelis' strategy to prepare for future growth in Asia. We believe this transaction will provide Novelis with greater control of our manufacturing assets in the region while at the same time helping to drive our ongoing initiatives for globally integrated operations."