Alcoa Completed Sale of Interest in Ma’aden Joint Venture

SEATTLE (Scrap Monster): Alcoa Corporation announced that it has successfully completed the sale of its full ownership interest of 25.1% in the Ma’aden Joint Venture to the Saudi Arabian Mining Company. Earlier, the two companies had entered into a binding share purchase and subscription agreement.

After the purchase was completed, Alcoa received $150 million in cash and about 86 million shares in Ma'aden, which were worth about $1.2 billion. In the third quarter of this year, the business anticipates reporting a gain of about $780 million in other income.

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Alcoa will retain its Ma'aden shares for at least three years in accordance with the conditions of the deal. Following the third, fourth, and fifth anniversaries of the transaction's closing, it is then permitted to sell one-third of the shares. Under some circumstances, the business will be permitted to borrow against and hedge its Ma'aden shares during the holding period.

Alcoa's president and CEO, William F. Oplinger, expressed gratitude to the Kingdom of Saudi Arabia and Ma'aden's leadership for their 16-year collaboration. He went on to say that the business anticipates ongoing involvement as Ma'aden stockholders.

Citi served as Alcoa's sole financial advisor for the deal, and White & Case LLP served as its legal counsel.