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Alcoa (NYSE: AA) said late Monday that it has 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-upon transaction valuing the Australian miner at ~$2.2 billion .
Under the terms of the agreement, Alumina (OTCQX:AWMCF) (OTCQX:AWCMY) shareholders would receive a consideration of 0.02854 Alcoa (aa) shares for each Alumina share held, implying a value of A$1.15/share, based on Alcoa’s closing price on February 23.
Upon closing of the deal, existing Alcoa (AA) shareholders as of the record date will own approximately 68.4% of the combined company, while Alumina (OTCQX:AWCMF) (OTCQX:AWCMY) shareholders will own 31.6% .
Alumina (OTCQX:AWCMF) (OTCQX:AWCMY)’s only asset is a 40% stake in the Alcoa World Alumina and Chemicals joint venture, which is controlled by Alcoa (AA) and has interests in bauxite mining, refining alumina and aluminum smelting throughout Australia, Brazil, Spain, Saudi Arabia and Guinea.