Elkem Transforms: Divests Silicones, Sharpens Focus on Metals and Materials
February 16, 2026, 3:52 pm
Elkem undergoes significant corporate transformation. It divests its majority Silicones division to Bluestar. This move creates a focused metals and materials powerhouse. The deal involves Bluestar redeeming its 52.9% Elkem shareholding. No cash payments are made. Elkem simultaneously plans a NOK 1.5 billion underwritten equity issue. This bolsters its financial foundation. It ensures full control for minority shareholders. The strategic divestment positions Elkem for enhanced growth and stability in critical materials.
Elkem is reshaping its future. The company announced a major strategic shift. It will sell the majority of its Silicones division. Bluestar is the buyer. This transaction marks a pivot. Elkem will now focus intensely on metals and materials. The deal is substantial. It redefines Elkem’s core business.
The divestment is not a cash sale. Bluestar’s 338,338,536 shares in Elkem will be redeemed. This represents 52.9% of Elkem’s total shares. Bluestar will exit its ownership of Elkem. Elkem shareholders will gain full control. No money changes hands between Elkem and Bluestar for this exchange. This unique structure underscores the strategic alignment. Both companies gain focused operations.
This corporate restructuring follows extensive review. Elkem initiated a strategic assessment in early 2025. The aim was long-term value creation. The Board believes this agreement offers the best path. It benefits employees, shareholders, and stakeholders. The Silicones division gains a dedicated owner in Bluestar. Bluestar brings deep industry knowledge. It is strategically focused on silicones.
The transaction involves Elkem subsidiaries within the Silicones perimeter. These assets are global. Asia-Pacific is the largest market. Some Silicones entities will remain with Elkem. These are Yongdeng (Silicon Metal China), Roussillon (upstream Silicones in France), and Chakan (downstream Silicones in India). Roussillon will supply upstream silicones to Bluestar for five years. This ensures operational viability. Elkem explores options for other retained assets.
Elkem will emerge as a pure-play metals and materials company. This simplifies its business model. It sharpens strategic focus. Capital allocation will shift. It will target high-growth opportunities within its core segments. The company anticipates a more attractive financial profile. Reduced complexity is expected. Volatility should decrease. Cash flow generation will improve. This supports investments and shareholder distributions.
A robust financial position is key. Elkem announced a NOK 1.5 billion equity capital raise. This issue is fully underwritten. Prominent shareholders pledged their support. These include Folketrygdfondet, Must Invest, DNB Asset Management, Nordea Investment Management, and Perestroika. This capital injection strengthens Elkem’s balance sheet. It ensures financial resilience post-transaction.
The equity issue will proceed via a bookbuilding process. It will be subject to market conditions. Allocation criteria will be set by the Board. Elkem also plans a repair offering. This allows other shareholders to subscribe for new shares. The subscription price will be consistent. This ensures fairness for all investors. This is the only equity issue contemplated for the transaction.
Elkem’s post-transaction structure will consist of Silicon Products, Carbon Solutions, and Other segments. The remaining business has lower capital intensity. This will boost cash flow generation. Deleveraging capacity will improve. It provides flexibility for organic and inorganic growth. Elkem aims for a strong credit position. It seeks investment grade ratings. A debt refinancing is also expected.
The transaction requires shareholder approval. An Extraordinary General Meeting (EGM) is set for March 9, 2026. Shareholders will vote on the share purchase agreement. They will also vote on Bluestar's share redemption. Bluestar cannot vote on the purchase agreement itself. However, it will vote in favor of the share redemption. Key minority shareholders, representing approximately 30% of eligible votes, support the deal. Overall, 67% of eligible shares support the redemption.
Lender waivers and customary approvals are also conditions. The transaction is expected to close by May 2026. Bluestar representatives will resign from Elkem's Board of Directors upon closing. New board members will be elected at the EGM.
Elkem’s long-term vision remains clear. It continues to provide advanced silicon-based materials. The company combines natural raw materials, renewable energy, and human ingenuity. It supports vital innovations. These include electric mobility, digital communications, and sustainable cities. Elkem is a global leader. It operates across five continents. Its R&D centers drive innovation. The company prioritizes supply chain security for critical materials. This strategic transformation enhances Elkem’s ability to deliver on this mission. It solidifies its standing in the global industrial landscape.
Elkem is reshaping its future. The company announced a major strategic shift. It will sell the majority of its Silicones division. Bluestar is the buyer. This transaction marks a pivot. Elkem will now focus intensely on metals and materials. The deal is substantial. It redefines Elkem’s core business.
The divestment is not a cash sale. Bluestar’s 338,338,536 shares in Elkem will be redeemed. This represents 52.9% of Elkem’s total shares. Bluestar will exit its ownership of Elkem. Elkem shareholders will gain full control. No money changes hands between Elkem and Bluestar for this exchange. This unique structure underscores the strategic alignment. Both companies gain focused operations.
This corporate restructuring follows extensive review. Elkem initiated a strategic assessment in early 2025. The aim was long-term value creation. The Board believes this agreement offers the best path. It benefits employees, shareholders, and stakeholders. The Silicones division gains a dedicated owner in Bluestar. Bluestar brings deep industry knowledge. It is strategically focused on silicones.
The transaction involves Elkem subsidiaries within the Silicones perimeter. These assets are global. Asia-Pacific is the largest market. Some Silicones entities will remain with Elkem. These are Yongdeng (Silicon Metal China), Roussillon (upstream Silicones in France), and Chakan (downstream Silicones in India). Roussillon will supply upstream silicones to Bluestar for five years. This ensures operational viability. Elkem explores options for other retained assets.
Elkem will emerge as a pure-play metals and materials company. This simplifies its business model. It sharpens strategic focus. Capital allocation will shift. It will target high-growth opportunities within its core segments. The company anticipates a more attractive financial profile. Reduced complexity is expected. Volatility should decrease. Cash flow generation will improve. This supports investments and shareholder distributions.
A robust financial position is key. Elkem announced a NOK 1.5 billion equity capital raise. This issue is fully underwritten. Prominent shareholders pledged their support. These include Folketrygdfondet, Must Invest, DNB Asset Management, Nordea Investment Management, and Perestroika. This capital injection strengthens Elkem’s balance sheet. It ensures financial resilience post-transaction.
The equity issue will proceed via a bookbuilding process. It will be subject to market conditions. Allocation criteria will be set by the Board. Elkem also plans a repair offering. This allows other shareholders to subscribe for new shares. The subscription price will be consistent. This ensures fairness for all investors. This is the only equity issue contemplated for the transaction.
Elkem’s post-transaction structure will consist of Silicon Products, Carbon Solutions, and Other segments. The remaining business has lower capital intensity. This will boost cash flow generation. Deleveraging capacity will improve. It provides flexibility for organic and inorganic growth. Elkem aims for a strong credit position. It seeks investment grade ratings. A debt refinancing is also expected.
The transaction requires shareholder approval. An Extraordinary General Meeting (EGM) is set for March 9, 2026. Shareholders will vote on the share purchase agreement. They will also vote on Bluestar's share redemption. Bluestar cannot vote on the purchase agreement itself. However, it will vote in favor of the share redemption. Key minority shareholders, representing approximately 30% of eligible votes, support the deal. Overall, 67% of eligible shares support the redemption.
Lender waivers and customary approvals are also conditions. The transaction is expected to close by May 2026. Bluestar representatives will resign from Elkem's Board of Directors upon closing. New board members will be elected at the EGM.
Elkem’s long-term vision remains clear. It continues to provide advanced silicon-based materials. The company combines natural raw materials, renewable energy, and human ingenuity. It supports vital innovations. These include electric mobility, digital communications, and sustainable cities. Elkem is a global leader. It operates across five continents. Its R&D centers drive innovation. The company prioritizes supply chain security for critical materials. This strategic transformation enhances Elkem’s ability to deliver on this mission. It solidifies its standing in the global industrial landscape.