Deal mechanics and valuation
Elkem ASA announced on Friday that it will transfer ownership of its silicones business to Bluestar in exchange for approximately 383.3 million Bluestar shares, in a transaction executed without cash consideration. Using the prior trading day's closing price as the reference, the implied valuation of the silicones business corresponds to an EV/EBITDA multiple of 12.8x on 2026 estimates.
The company said the transaction will reduce Elkem's net debt from the present NOK 11.9 billion to about NOK 9.8 billion. Following the divestment, the remainder of Elkem's operations - excluding the silicones unit - would carry an implied EV/EBITDA multiple of 7.4x on 2026 estimates, and the remaining business would show a net debt to EBITDA ratio of 4.0x.
Equity raise and underwriting
To support its capital structure, a consortium of major shareholders representing roughly 30% of Elkem's outstanding shares has fully underwritten a NOK 1.5 billion equity issuance. The company has confirmed the equity raise will increase share capital by 17.5%; however, the specific discount applied to the new issue was not disclosed.
Fourth-quarter financial performance
For the fourth quarter, Elkem reported EBITDA of NOK 890 million, a decline of 23.3% compared with the same period a year earlier but 25.8% above consensus analyst estimates. Revenue in the quarter amounted to NOK 7,284 million, down 14.3% year-over-year.
The silicones division outperformed expectations with reported EBITDA of NOK 399 million versus a consensus figure of NOK 205 million. That result came despite a 2.7% year-on-year drop in volumes to 109,000 tons. Management attributed the silicones improvement to better cost positioning, higher selling prices and seasonal influences.
Other business lines fared less well. Silicon Products generated EBITDA of NOK 294 million, below the consensus benchmark of NOK 310 million, as lower selling prices more than offset an 8% rise in volumes; ferrosilicon was singled out as particularly weak. Carbon Solutions posted EBITDA of NOK 174 million, missing consensus by 5.2% amid lower volumes and sales prices.
Near-term outlook and market constraints
Looking into the first quarter of 2026, Elkem highlighted that trade regulations and protective measures continue to shape its end markets. The company expects silicones markets to remain broadly stable in the near term, while conditions for silicon products are expected to be weaker. To address inventories in silicon products, Elkem said it is reducing capacity in Norway. Carbon Solutions is forecast to see a modest improvement from recent levels, although overall demand remains weak.
Summary of key figures:
- Silicones divested for ~383.3 million Bluestar shares; implied 2026 EV/EBITDA of 12.8x.
- Elkem net debt seen falling from NOK 11.9 billion to NOK 9.8 billion post-transaction.
- Remaining group implied EV/EBITDA of 7.4x and net debt/EBITDA of 4.0x for 2026 estimates.
- Q4 EBITDA NOK 890 million (down 23.3% YoY; 25.8% above consensus); Q4 revenue NOK 7,284 million (down 14.3% YoY).