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RHI and Magnesita to Combine to Create a Leading Refractory Company

The combined company, to be named RHI Magnesita, will be established in the Netherlands and listed in London. Accordingly, RHI’s Management Board has agreed to sign a share purchase agreement with Magnesita’s Controlling Shareholders regarding the acquisition of a controlling stake of at least 46 %, but no more than 50 % plus one share of the entire share capital in Magnesita, pending RHI’s Supervisory Board approval. The consideration for the 46 % stake will consist of cash amounting to EUR 118 million and 4,6 million new shares to be issued by RHI Magnesita. As a result of the Transaction, GP, Magnesita’s largest shareholder, will become a relevant shareholder of RHI Magnesita and will be represented on its board of directors
. The transaction is expected to complete in 2017. Both companies will remain completely separate and independent until then.
 RHI Magnesita will be a leading refractory company with an enhanced growth profile due to improved regional presence and complementary asset portfolios. RHI, based in Austria, is a global supplier of high-grade refractory products, with 2015 revenues of EUR 1753 million. Brazil-based Magnesita is a global provider of integrated refractory solutions, services and industrial minerals, with revenues of USD 1013 million (EUR 914 million) in 2015.

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