Pittsburgh-based Alcoa Corp., a bauxite, alumina and aluminum products provider, recently completed the sale of its 25.1 percent full ownership interest in the Ma’aden Joint Venture to Saudi Arabian Mining Co. (Ma’aden). Prior to the sale, Ma’aden owned 74.9 percent.
Under the terms of the agreement, Alcoa received $150 million in cash and approximately $1.2 billion in proceeds from approximately 86 million shares of Ma’aden. Alcoa will be required to hold the shares for a minimum of three years. After the third, fourth and fifth anniversaries of the transaction’s closing, Alcoa can sell one-third of the shares.
“While today marks the end of the joint venture, the closing of this transaction demonstrates the initial value to our shareholders and enables visibility within Alcoa’s financials until we monetize in the future,” William F. Oplinger, Alcoa president and CEO, said. “I thank Ma’aden’s leadership and the Kingdom of Saudi Arabia for their partnership over the last 16 years, and we look forward to continued engagement as Ma’aden shareholders.”
Created in 2009, the joint venture was as a fully integrated mining complex in Saudi Arabia. It comprises the Ma’aden Bauxite and Alumina Co., a bauxite mine and alumina refinery, and the Ma’aden Aluminum Co., an aluminum smelter and casthouse.