Australia's Alumina agrees $2.2 bln all-stock buyout offer from US-based Alcoa (updated)

Alumina

11/03/2024 23:12

(Writes through with further details on deal from paragraphs
2-6)
       March 12 (Reuters) - Australia's Alumina Limited
 AWC.AX  said on Tuesday it has agreed to be acquired by U.S.
aluminium producer Alcoa  AA.N  for a $2.2 billion all-stock
buyout offer. 
    The terms of the deal are consistent with Alcoa's offer for
Alumina announced on Feb. 26, when Alcoa's CEO William Oplinger
told analysts the deal would eliminate Alumina's overhead costs
of A$12 million ($7.93 million) a year. 
    Under the deal, Alumina shareholders would receive a
consideration of 0.02854 Alcoa shares for each Alumina share
they hold, implying a value of A$1.15 per Alumina share, based
on Alcoa's closing price as of Feb. 23. 
    Once the deal closes, Alumina shareholders on the date of
record will own about 31.6% of the merged entity, while existing
Alcoa shareholders will hold 68.4%. 
    Alumina's board, including its Managing Director and CEO, 
recommend that shareholders vote in favour of the deal, in the
absence of a superior proposal. 
    Alumina's only asset is a 40% stake in the Alcoa World
Alumina and Chemicals joint venture, which is controlled by
Alcoa and has interests in bauxite mining, alumina refining and
aluminium smelting across Australia, Brazil, Spain, Saudi Arabia
and Guinea.


($1 = 1.5126 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Roushni.Nair@thomsonreuters.com;))