Alcoa Corp (AA, AAI.AX), a leading aluminum manufacturer, announced on Sunday its decision to divest its entire 25.1% stake in the Ma’aden Joint Venture to the Saudi Arabian Mining Company, Ma’aden, for approximately $1.1 billion.The transaction’s terms involve around 86 million Ma’aden shares, valued at $950 million based on the volume-weighted average share price over the 30 days ending on September 12, 2024, along with an additional $150 million in cash.Established in 2009, the joint venture has seen Alcoa holding a 25.1% share, while Ma’aden holds the remaining 74.9%. As of June 30, 2024, the carrying value of Alcoa’s investment stood at $545 million.Under the agreement, Alcoa will retain its Ma’aden shares for a minimum of three years, with one-third of the shares becoming transferable after each of the third, fourth, and fifth anniversaries of the transaction’s closure. Throughout this holding period, Alcoa will have the right to hedge and borrow against its Ma’aden shares. The minimum holding period may be shortened under specific conditions. Post-transaction, Alcoa will hold approximately 2% of Ma’aden’s outstanding shares.The deal is anticipated to be finalized in the first half of 2025.The material has been provided by InstaForex Company – www.instaforex.com
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