Federal Court Approves Alumina Limited's Acquisition by Alcoa Corporation
ALUMINA LIMITED (AWC) Share Update July 2024 Monday 22nd
Federal Court Approves Alumina's Acquisition by Alcoa
In a significant development for the Australian stock market, the Federal Court of Australia has approved the acquisition of Alumina Limited (ASX: AWC) by a wholly-owned subsidiary of Alcoa Corporation (Alcoa). This decision marks a pivotal moment for both companies and their shareholders.
Instant Summary:
- Federal Court of Australia approves Alumina's acquisition by Alcoa.
- Alumina shares to be suspended from trading on 23 July 2024.
- Eligible shareholders to receive 0.02854 new Alcoa CDIs for each Alumina share.
- Implementation of the Scheme expected on 1 August 2024.
- New Alcoa CDIs to commence trading on ASX on 2 August 2024.
Federal Court Approval
The Federal Court of Australia has given the green light for the acquisition of Alumina Limited by a subsidiary of Alcoa Corporation. This approval is a crucial step in the process, allowing the Scheme to move forward and become legally effective.
Alumina plans to lodge an official copy of the Court orders with the Australian Securities and Investments Commission (ASIC) tomorrow. Once this is done, the Scheme will be legally effective, and Alumina shares will be suspended from trading on the ASX from the close of trading on 23 July 2024.
Scheme Consideration
Upon the Scheme's implementation, expected 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.
Key Dates
The timeline for the remaining key events of the Scheme is as follows:
- Effective Date and last day of trading of Alumina shares: 23 July 2024
- Alcoa CDIs listed on ASX: 24 July 2024
- Scheme Record Date: 25 July 2024
- Implementation Date: 1 August 2024
- New Alcoa shares commence trading on NYSE: 1 August 2024
- New Alcoa CDIs commence trading on ASX: 2 August 2024
- Payment of Net Cash Proceeds to Ineligible Foreign Shareholders: By no later than 16 September 2024
These dates are subject to change, and any updates will be announced to the ASX.
The approval of the acquisition is expected to have a positive impact on Alumina's stock in the short term, as shareholders will benefit from the new Alcoa CDIs. However, the suspension of Alumina shares from trading could introduce some volatility in the market. For Alcoa, the acquisition strengthens its position in the industry, potentially leading to long-term gains.
Investor Reaction:
Investor reaction has been largely positive, with many viewing the acquisition as a strategic move that will benefit both companies. Analysts have noted that the Scheme Consideration offers a fair value for Alumina shareholders, and the market has responded favorably to the news.
Conclusion:
Investors should keep an eye on the upcoming key dates and monitor the performance of Alcoa CDIs once they commence trading. This acquisition represents a significant opportunity for both Alumina and Alcoa, and staying informed will be crucial for making well-timed investment decisions.