Champion Iron (CIA) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands presence in high-grade iron ore, diversifies geographically, and supports decarbonization and European market focus.

• Enhances position in the green steel supply chain with access to renewable power, low-carbon operations, and proximity to European steel hubs.

• Both companies share strong ESG credentials, similar cultures, and operational expertise, supporting integration and sustainable growth.

• Diversifies product mix and client base, including magnetite for the chemical industry and synergies in logistics and product blending.

• Both assets are in tier-one jurisdictions, supporting long-term growth ambitions.

Financial terms and conditions

• All-cash offer at NOK 79 (US$7.79) per share, valuing the target at NOK 2,930 million (US$289–$290 million).

• Funded through company cash, US$100 million private placement (3.5% discount to 20-day VWAP), and US$150 million term loan from Scotiabank.

• Private placement results in 5% dilution and 8.5%–8.48% post-deal stake for the investor.

• Term loan matures in four years, repaid quarterly after a two-quarter grace period.

• Over 51% of target shareholders have pre-accepted the offer.

Synergies and expected cost savings

• Opportunities for technical cooperation, output optimization, and product blending for European and North African markets.

• Lower all-in sustaining costs and corporate tax rates at the acquired asset compared to existing operations.

• Potential to expand magnetite sales and access higher-margin niche markets.

• Collaboration on sales logistics, customer engagement, and capital return strategies.

• Expected near-term accretive impact on revenue, EBITDA, and cash flows per share.