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Alcoa (NYSE:AA) said late Monday it entered into a binding agreement to acquire Alumina Ltd. (OTCQX:AWCMF) (OTCQX:AWCMY) in an all-stock deal on terms consistent with the previously agreed transaction that values the Australian miner at ~$US2.2B.
Under the deal terms, Alumina (OTCQX:AWCMF) (OTCQX:AWCMY) shareholders would receive a consideration of 0.02854 Alcoa (AA) shares for each Alumina share they own, implying a value of A$1.15/share, based on Alcoa’s closing price as of February 23.
Upon the deal’s closing, existing Alcoa (AA) shareholders on the date of record would own ~68.4% of the combined company while Alumina (OTCQX:AWCMF) (OTCQX:AWCMY) shareholders would own 31.6%.
Alumina’s (OTCQX:AWCMF) (OTCQX:AWCMY) only asset is a 40% stake in the Alcoa World Alumina and Chemicals joint venture, which is controlled by Alcoa (AA) and owns interests in bauxite mining, alumina refining and aluminum smelting across Australia, Brazil, Spain, Saudi Arabia and Guinea.