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Ma’aden and US aluminum maker Alcoa signed a binding sale and purchase agreement that will see Ma’aden buying a 25.1% stake in its JV with Alcoa for USD 1.1 bn, Alcoa and Ma’aden (pdf) said in separate statements. Under the agreement, Ma’aden will give Alcoa roughly 86 mn Ma’aden shares and USD 150 mn in cash, according to Alcoa’s statement. The transaction is expected to close in 1H 2025. Reuters also had the story.
The nitty gritty: Under the agreement, Alcoa will transfer its shares in two JVs — Ma’aden Aluminium Company (MAC) and Ma’aden Bauxite and Alumina Company (MBAC) — to Ma’aden. With the newly-issued Ma’aden shares, Alcoa will have a 2.2% stake in Ma’aden after the transaction. Alcoa’s shares will be subject to a three-year lockup period. One-third of these shares will become transferable after each of the third, fourth, and fifth anniversaries of the agreement closing. During this time, Alcoa can hedge or borrow against its shares. In some cases, the minimum holding period may be shortened.
What’s next? Once completed, Ma’aden will have full ownership and control of MAC and MBAC, and Alcoa will shift from JV partner to shareholder.
BACKGROUND- The JV was formed in 2009, and now includes MBAC and MAC. Alcoa owns 25.1% in the JV and Ma’aden holds 74.9%. Alcoa’s investment was valued at USD 545 mn as of June 2024.
