Alcoa Corporation, a global leader in bauxite, alumina, and aluminum products, has amended its joint venture with the Saudi Arabian Mining Company (Ma’aden) in which Alcoa holds a minority, 25.1%.
The joint venture was created in 2009 as a fully integrated aluminum complex in the Kingdom of Saudi Arabia, comprised of three entities: the Ma’aden Bauxite and Alumina Company (MBAC; the bauxite mine and alumina refinery), the Ma’aden Aluminium Company (MAC; the aluminum smelter and cast house), and the Ma’aden Rolling Company (MRC; the can and auto sheet mill).
As a result of the amended joint venture agreements, signed June 26, 2019, and expected to close by month end: Alcoa will transfer its 25.1% interest in MRC to Ma’aden. Alcoa will make a contribution to MRC in the amount of US$100 million paid in two installments: 1) US$34 million paid on June 17, 2019 to fund its 25.1% share of MRC’s current cash requirements, and 2) US$66 million paid at closing. Alcoa is released from all future MRC obligations, including Alcoa’s sponsor support of approximately US$295 million of MRC debt and its share of any future MRC cash requirements Alcoa will avoid future capital contributions in any MRC debt restructuring and recapitalization. Alcoa and Ma’aden further defined MBAC and MAC shareholder rights, including the dividend policy.
The parties will maintain their commercial relationship, which includes Alcoa providing sales, logistics and customer technical services support for MRC products for the North American can sheet market.
The Company will retain its 25.1% minority interest in MBAC and MAC, and Ma’aden will continue to own a 74.9% interest.Email Post to a Friend