Alumina Limited Finalizes Acquisition by Alcoa Corporation
ALUMINA LIMITED (AWC) Share Update August 2024 Thursday 1st
Alumina Limited Completes Acquisition by Alcoa Corporation
Alumina Limited (ASX: AWC) announced today the successful implementation of its scheme of arrangement with Alcoa Corporation, resulting in Alcoa acquiring 100% of Alumina's shares.
Instant Summary:
- Alcoa Corporation acquires 100% of Alumina Limited shares.
- Eligible shareholders receive 0.02854 new Alcoa CDIs per Alumina share.
- Ineligible foreign shareholders to receive pro rata net cash proceeds by 16 September 2024.
- Alumina shares delisted from ASX effective 2 August 2024.
Implementation of Scheme
Alumina Limited (ASX: AWC) has announced the successful implementation of its scheme of arrangement with Alcoa Corporation (Alcoa). Under this scheme, Alcoa has acquired 100% of the fully paid ordinary shares in Alumina. As a result, all Alumina shares have been transferred to AAC Investments Australia 2 Pty Ltd, an indirect wholly-owned subsidiary of Alcoa. Alumina is now an indirect wholly-owned subsidiary of Alcoa.
Scheme Consideration
Eligible Alumina shareholders have received 0.02854 new Alcoa CDIs for each Alumina share held as of 7:00 PM on the Scheme Record Date of 25 July 2024. Ineligible foreign shareholders will receive their pro rata share of the net cash proceeds under the sale facility, which is expected to be distributed by no later than Monday, 16 September 2024.
Delisting of Alumina
As previously announced, trading in Alumina shares on the ASX was suspended at the close of trading on 23 July 2024. Alumina intends to apply for its removal from the official list of ASX, effective from the close of trading on Friday, 2 August 2024.
Shareholder Information Line
If shareholders have any questions regarding the scheme or the scheme booklet, they can contact the Shareholder Information Line at 1300 850 505 (within Australia) or +61 3 9415 4000 (outside Australia) between 8:30 AM to 5:00 PM, Monday to Friday (excluding public holidays).
The acquisition of Alumina Limited by Alcoa Corporation is a significant move in the aluminum industry. This transition is likely to streamline operations and create synergies between the two companies. The issuance of new Alcoa CDIs to eligible shareholders could positively impact Alcoa's stock as it integrates Alumina's assets and capabilities.
Investor Reaction:
Analysts are likely to view this acquisition favorably, considering the potential for increased efficiency and market share for Alcoa. However, some investors may have concerns about the integration process and the impact on short-term financial performance.
Conclusion:
Investors should closely monitor Alcoa's performance as it integrates Alumina's operations. The successful implementation of the scheme marks a new chapter for both companies, with potential long-term benefits. Staying informed on further developments and Alcoa's strategic plans will be crucial for making informed investment decisions.