Gelonghui, Feb. 26 | CITIC Resources (01205.HK) announced that the Group holds 9.6117% of Alumina Limited (AWC)'s shares, a leading Australian company listed on the Australian Stock Exchange (stock code: AWC). The Group's investment in AWC is recorded as an associated company of the Group. The Group has global interests in bauxite mining, alumina refining and selected aluminum smelting operations through AWC's 40% ownership of the AlcoaWorld Alumina and Chemicals joint venture, the world's largest alumina producer. AWAC's joint venture partner and operator is AlcoaCorporation, whose shares are listed on the New York Stock Exchange (stock code: AA).
The Board of Directors of the Company took note of the announcement issued by AWC on February 26, 2024 relating to a non-binding, indicative and conditional offer by Alcoa to acquire 100% of AWC's issued common shares through a plan arrangement at the cost of 0.02854 common shares of AWC shares per AWC share.
As disclosed in the AWC announcement, based on the closing price of ALCOA and AWC shares on February 23, 2024 and the current AUD/USD exchange rate of 0.656, the non-binding offer represents a 13.1% premium over AWC's share price on February 23, 2024.
The non-binding offer is subject to negotiation and signing of a final transaction document satisfactory to both parties. It is expected to meet customary conditions and obtain regulatory approval, including shareholder approval from AWC and Alcoa. It is uncertain whether a non-binding offer will result in a binding takeover offer against AWC. The company is currently considering and evaluating this matter.