Alcoa Amended Agreement Towards Alumina Limited Acquisition
Aluminum | 2024-05-21 11:32:00
It turned down the allegations that the amendments were made out of CITIC’s compulsion.
By Paul Ploumis
SEATTLE (Scrap Monster): Pittsburgh-based Alcoa Corporation announced that it has amended its acquisition agreement towards acquisition of assets of Alumina Limited. The revised Scheme Implementation Deed is further to discussions with key stakeholders, including the second largest shareholder Chinese CITIC Group, which holds 18.9% in Alumina Limited.
Contrary to initial plan of receiving New CHESS Depositary Interests (CDIs), CITIC will now receive a portion of its consideration in non-voting convertible preferred stock. The revision will allow CITIC to maintain its stake without exceeding the 5% voting share threshold. The economic rights of these non-voting shares will be equivalent to those of the New Alcoa CDIs.
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The company has already obtained the backing of Allan Gray Australia Pty Ltd, the largest shareholder of Alumina Limited. It noted that amendment marks a practical solution to a regulatory hurdle, stating that it is an important transaction. It turned down the allegations that the amendments were made out of CITIC’s compulsion.
The transaction is expected to be completed during Q3 this year subject to satisfaction of customary conditions, receipt of necessary regulatory approvals and approvals by shareholders of both the companies.
