In this all-scrip (all-stock) deal, Alumina Limited shareholders are set to receive 0.02854 shares of Alcoa for each share of Alumina Limited they own, as per the "Agreed Ratio." As of Alcoa's closing share price on February 23, 2024, this ratio suggests an equity valuation of approximately $2.2 billion for Alumina Limited.
The Board of Directors of Alumina Limited plans to recommend the Agreed Ratio to its shareholders, provided there is no superior proposal and subject to an independent expert's ongoing assessment that the transaction serves the best interests of Alumina Limited shareholders.
As the Process Deed outlines, Alcoa and Alumina Limited aim to finalize and execute a scheme implementation agreement for the all-scrip transaction (the "Agreement"). Upon the Agreement's completion, Alumina Limited shareholders would hold a 31.25 per cent stake, while Alcoa shareholders would hold a 68.75 per cent stake in the combined company.
