©Reuters.
Investing.com — Alcoa Corporation (NYSE:) announced late Sunday that it is acquiring Australian aluminum producer Alumina Ltd. (ASX:) for $2.2 billion to create one of the world's largest bauxite and alumina producers. announced that it had offered all of its shares.
based in pittsburgh alcohol According to the company, Alumina shareholders will receive 0.02854 Alco shares for each Alumina share, representing a per-share value of approximately $0.076 based on Alcoa's last closing price.
The figures value Alumina at about $2.2 billion, representing a nearly 13% premium to the company's closing price on Friday. Alumina shares rose 4.4% to $1.065 in Australian trading on Monday.
Alumina's board of directors, along with management, intends to recommend the acquisition proposal to shareholders, and the company said it has entered into a 20-day exclusivity period with Alcoa regarding the acquisition.
The two companies are already members of the joint venture Alcoa World Alumina & Chemical (AWAC), which accounts for about a quarter of the world's alumina supply. Alcoa is the principal operator of the venture and holds a 60% stake in the venture.
“Alcoa is a proven operator of AWAC and the value creation enabled under a simplified ownership structure,” said William F. Oplinger, Alcoa President and CEO, in a press release. “We recognize the opportunity.”
Under the proposed transaction, Alcoa would have a secondary listing on the Australian Securities Exchange. The company has also entered into an agreement with Alan Gray Australia, Alumina's largest shareholder, to purchase up to 19.9% of Alumina's shares.
