Alcoa forges smart deal out of metal woes

Alumina

26/02/2024 04:03

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Antony Currie
       MELBOURNE, Feb 26 (Reuters Breakingviews) - The US metal
producer wants to buy Alumina, whose sole asset is 40% of a
joint venture with its wannabe new owner. Benefits to Alcoa from
the $2.2 bln deal include a simpler structure. And selling
investors get a premium despite rising costs and falling
aluminium prices.    
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    CONTEXT NEWS 
    The board of Australia-listed Alumina on Feb. 26 said it
intends to recommend an all-share offer from Alcoa valuing the
company's equity at some A$3.35 billion ($2.2 billion). 
    Alumina shareholders will receive a consideration of 0.02854
Alcoa shares for each Alumina share. The offer is roughly
equivalent to A$1.15 a share, a premium of 13%, based on the
closing price of each company's stock on Feb. 23.
    Alumina's sole asset is a 40% stake in Alcoa World Alumina
and Chemicals, a joint venture 60%-owned by Alcoa.

 (Editing by Una Galani and Katrina Hamlin)
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