Alumina Limited's Acquisition by Alcoa Corporation Now Legally Effective
AWC (AWC) Share Update July 2024 Monday 22nd
Alumina Limited's Scheme of Arrangement with Alcoa Becomes Legally Effective
Alumina Limited (ASX: AWC) has announced that the scheme of arrangement under which Alcoa Corporation will acquire 100% of its fully paid ordinary shares is now legally effective, marking a significant milestone in the acquisition process.
Instant Summary:
- Alcoa Corporation to acquire 100% of Alumina Limited's shares.
- Alumina shares to be suspended from trading from 23 July 2024.
- Eligible shareholders to receive 0.02854 new Alcoa CDIs per Alumina share.
- Scheme implementation expected on 1 August 2024.
- Federal Court of Australia has approved the scheme.
Legal Effectiveness of the Scheme
Following the announcement made yesterday, Alumina Limited (ASX: AWC) has confirmed that the scheme of arrangement under which Alcoa Corporation (Alcoa) will acquire 100% of the fully paid ordinary shares in Alumina is now legally effective. This significant development follows the approval of the scheme by the Federal Court of Australia.
Alumina has lodged an office copy of the court orders with the Australian Securities and Investments Commission (ASIC), as required under section 411(10) of the Corporations Act 2001 (Cth). The court orders are attached to the official announcement.
Trading Suspension and Shareholder Details
As a result of this development, Alumina shares are expected to be suspended from close of trading today, Tuesday, 23 July 2024. The implementation of the scheme is anticipated to occur on 1 August 2024. Eligible Alumina shareholders will receive 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. Specific arrangements have been made for CITIC and the depositary and/or custodian of Alumina’s ADR program, as detailed in the scheme booklet.
Shareholder Information and Contacts
For any questions regarding the scheme or the scheme booklet, shareholders can contact the Shareholder Information Line. The contact numbers are 1800 990 479 (within Australia) or +61 1800 990 479 (outside Australia) for questions before 25 July 2024, and 1300 850 505 (within Australia) or +61 39415 4000 (outside Australia) for questions after 25 July 2024.
For further investor enquiries, Craig Evans, General Manager – Strategy & Investor Relations, can be contacted at +61 3 8699 2603 / +61 413 013 533 or via email at [email protected]. For media enquiries, Tim Duncan from Hinton and Associates can be reached at +61 3 9600 1979 or mobile +61 408 441 122.
The legal effectiveness of the scheme marks a significant step forward in the acquisition process. This development is likely to impact Alumina's stock as trading suspension takes effect. The issuance of new Alcoa CDIs to eligible shareholders provides a clear path for the transition of ownership. Investors may see this as a positive move, given Alcoa's established market presence.
Investor Reaction:
Investor reactions have been generally positive, with many viewing the acquisition as a strategic move that could enhance shareholder value. Analysts have noted that the approval by the Federal Court and the structured approach to shareholder compensation are strong indicators of a well-managed transition.
Conclusion:
Investors should closely monitor the upcoming key dates, including the suspension of trading and the implementation of the scheme. Staying informed about the transition process and understanding the implications of receiving new Alcoa CDIs will be crucial for making informed investment decisions.