Alcoa Announces Agreement to Sell its 25.1% Stake in Ma’aden Joint Venture to Ma’aden
Alcoa (NYSE: AA) has announced an agreement to sell its 25.1% stake in the Ma'aden Joint Venture to Saudi Arabian Mining Company (Ma'aden) for approximately $1.1 billion. The transaction includes 86 million Ma'aden shares valued at $950 million and $150 million in cash. Alcoa will hold the Ma'aden shares for a minimum of three years, with gradual transferability. The deal simplifies Alcoa's portfolio in Saudi Arabia and provides greater financial flexibility. The joint venture, established in 2009, comprises two entities: Ma'aden Bauxite and Alumina Company (MBAC) and Ma'aden Aluminium Company (MAC). The transaction is subject to regulatory approvals and Ma'aden shareholder approval, with an expected closing in the first half of 2025.
Alcoa (NYSE: AA) ha annunciato un accordo per vendere la sua partecipazione del 25,1% nella Joint Venture Ma'aden alla Saudi Arabian Mining Company (Ma'aden) per circa 1,1 miliardi di dollari. La transazione comprende 86 milioni di azioni Ma'aden valutate 950 milioni di dollari e 150 milioni di dollari in contanti. Alcoa manterrà le azioni Ma'aden per un minimo di tre anni, con trasferibilità graduale. L'accordo semplifica il portafoglio di Alcoa in Arabia Saudita e offre maggiore flessibilità finanziaria. La joint venture, stabilita nel 2009, comprende due entità: Ma'aden Bauxite and Alumina Company (MBAC) e Ma'aden Aluminium Company (MAC). La transazione è soggetta ad approvazioni normative e all'approvazione degli azionisti di Ma'aden, con una chiusura prevista nel primo semestre del 2025.
Alcoa (NYSE: AA) ha anunciado un acuerdo para vender su participación del 25.1% en la Joint Venture Ma'aden a la Saudi Arabian Mining Company (Ma'aden) por aproximadamente $1.1 mil millones. La transacción incluye 86 millones de acciones de Ma'aden valoradas en 950 millones de dólares y 150 millones de dólares en efectivo. Alcoa mantendrá las acciones de Ma'aden durante un mínimo de tres años, con una transferibilidad gradual. El acuerdo simplifica el portafolio de Alcoa en Arabia Saudita y proporciona una mayor flexibilidad financiera. La joint venture, establecida en 2009, comprende dos entidades: Ma'aden Bauxite and Alumina Company (MBAC) y Ma'aden Aluminium Company (MAC). La transacción está sujeta a aprobaciones regulatorias y a la aprobación de los accionistas de Ma'aden, con un cierre esperado en el primer semestre de 2025.
알코아(뉴욕증권거래소: AA)는 사우디 아라비아 광업 회사(Ma'aden)에 대해 마아덴 합작 투자에서 25.1% 지분을 약 11억 달러에 매각하기로 합의했다고 발표했습니다. 이 거래에는 9억 5천만 달러로 평가되는 8,600만 Ma'aden 주식과 1억 5천만 달러 현금이 포함됩니다. 알코아는 Ma'aden 주식을 최소 3년 동안 보유하며, 점진적으로 이전할 수 있습니다. 이 거래는 알코아의 사우디 아라비아 포트폴리오를 단순화하고 더 큰 재정적 유연성을 제공합니다. 2009년에 설립된 이 합작 투자에는 두 개의 엔티티가 포함됩니다: Ma'aden 보크사이트 및 알루미나 회사(MBAC)와 Ma'aden 알루미늄 회사(MAC). 이 거래는 규제 승인과 Ma'aden 주주 승인을 받아야 하며, 2025년 상반기에 마감될 것으로 예상됩니다.
Alcoa (NYSE: AA) a annoncé un accord pour vendre sa participation de 25,1 % dans la coentreprise Ma'aden à la Saudi Arabian Mining Company (Ma'aden) pour environ 1,1 milliard de dollars. La transaction comprend 86 millions d'actions Ma'aden évaluées à 950 millions de dollars et 150 millions de dollars en espèces. Alcoa conservera les actions Ma'aden pendant un minimum de trois ans, avec une transférabilité progressive. L'accord simplifie le portefeuille d'Alcoa en Arabie Saoudite et offre une plus grande flexibilité financière. La coentreprise, établie en 2009, comprend deux entités : Ma'aden Bauxite and Alumina Company (MBAC) et Ma'aden Aluminium Company (MAC). La transaction est soumise à des approbations réglementaires et à l'approbation des actionnaires de Ma'aden, avec une clôture prévue dans le premier semestre de 2025.
Alcoa (NYSE: AA) hat eine Vereinbarung zur Veräußering seiner 25,1% Beteiligung am Ma'aden Joint Venture an die Saudi Arabian Mining Company (Ma'aden) für etwa 1,1 Milliarden Dollar bekannt gegeben. Die Transaktion umfasst 86 Millionen Ma'aden-Aktien, die mit 950 Millionen Dollar bewertet werden, sowie 150 Millionen Dollar in bar. Alcoa wird die Ma'aden-Aktien mindestens drei Jahre lang halten, mit schrittweiser Übertragbarkeit. Das Geschäft vereinfacht das Portfolio von Alcoa in Saudi-Arabien und bietet größere finanzielle Flexibilität. Das Joint Venture, das 2009 gegründet wurde, umfasst zwei Unternehmen: Ma'aden Bauxite and Alumina Company (MBAC) und Ma'aden Aluminium Company (MAC). Die Transaktion steht unter dem Vorbehalt der behördlichen Genehmigungen und der Zustimmung der Ma'aden-Aktionäre, wobei ein Abschluss im ersten Halbjahr 2025 erwartet wird.
- Alcoa to receive $1.1 billion in proceeds from the sale of its 25.1% stake in Ma'aden Joint Venture
- Transaction simplifies Alcoa's portfolio and enhances visibility of its investment in Saudi Arabia
- Provides greater financial flexibility for Alcoa, potentially improving long-term competitiveness
- Alcoa will own approximately 2% of Ma'aden's current shares outstanding post-transaction
- Alcoa must hold Ma'aden shares for a minimum of three years, limiting immediate liquidity
- Potential loss of strategic partnership and direct involvement in the Saudi Arabian mining complex
Insights
This transaction marks a significant shift in Alcoa's strategy, potentially improving its financial flexibility. The
This divestment aligns with a broader trend of portfolio optimization in the metals and mining sector. By simplifying its Saudi operations, Alcoa is likely aiming to focus on core assets and reduce exposure to geopolitical risks. The transaction's structure, allowing for hedging and borrowing against Ma'aden shares, provides Alcoa with financial flexibility while maintaining potential upside. For the aluminum industry, this deal may signal a shift towards more streamlined, regionally-focused operations. Investors should watch for potential impacts on global aluminum supply chains and pricing, as Ma'aden gains full control of these significant assets. The market's reaction to this news could influence sentiment towards other multinational mining companies with complex international joint ventures.
The transaction's legal structure is noteworthy. The share purchase and subscription agreement includes specific provisions for the gradual release of Ma'aden shares held by Alcoa, which balances immediate value realization with potential future gains. The regulatory approval process, including Ma'aden shareholder approval, adds a layer of complexity and potential risk to the deal's completion. Investors should be aware that the expected closing in the first half of 2025 leaves room for potential regulatory hurdles or market changes. The agreement's flexibility in reducing the holding period under certain circumstances provides a safeguard for Alcoa. From a governance perspective, this deal represents a significant shift in the joint venture's ownership structure, potentially impacting future operational decisions and strategic direction of the Saudi Arabian assets.
Alcoa to receive
Transaction simplifies Alcoa’s portfolio in
The joint venture was created in 2009, as a fully integrated mining complex in the
Pursuant to the terms of the Agreement, Alcoa will hold 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 closing of the transaction (the “holding period”). During the holding period, Alcoa would be permitted to hedge and borrow against its Ma’aden shares. Under certain circumstances, such minimum holding period would be reduced. Pro forma for the transaction, Alcoa would own approximately
“We deeply value our partnership with Ma’aden. We are confident that under the new arrangement, MBAC and MAC are well-positioned for success,” said William F. Oplinger, Alcoa’s President and CEO. “The transaction simplifies our portfolio, enhances visibility in the value of our investment in
“Since 2009, Alcoa has been a valued partner of Ma’aden, and our aluminium business has benefited substantially from our strategic partnership,” said Bob Wilt, Ma’aden’s CEO. “We look forward to future opportunities to collaborate as we continue to build the mining sector into the third pillar of the Saudi economy.”
The transaction is subject to regulatory approvals, approval by Ma’aden’s shareholders and other customary closing conditions and is expected to close in the first half of 2025.
In connection with the transaction, Citi is acting as Alcoa’s exclusive financial advisor, and White & Case LLP is acting as its legal counsel.
About Alcoa Corporation
Alcoa (NYSE: AA, ASX: AAI) is a global industry leader in bauxite, alumina, and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. With a values-based approach that encompasses integrity, operating excellence, care for people and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability, and stronger communities wherever we operate.
Dissemination of Company Information
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Cautionary Statement on Forward-Looking Statements
This press release contains statements that relate to future events and expectations about Alcoa’s sale of its interest in the Ma’aden joint venture, including but not limited to Alcoa’s expectations relating to the completion and timing of the transaction, and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “aim,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “projects,” “reach,” “seeks,” “sees,” “should,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Alcoa’s filings with the Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.
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Investor Contact:
Yolande Doctor
Yolande.B.Doctor@Alcoa.com
Media Contact:
Courtney Boone
Courtney.Boone@Alcoa.com
Source: Alcoa
FAQ
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