Alcoa Sells Stake in Chalco for $2 Billion
(Akron/Tire Review) Aluminum producer Alcoa Inc. sold its nearly 7 per cent stake in Chalco, China’s largest aluminum maker, for $2 billion. Alcoa said it would continue to invest in the aluminum industry in China, where it currently manufactures foil, fasteners, automotive components and other products. Alcoa said its initial investment in Chalco was less than $200 million.
The company sold its interest for the equivalent of $2.23 a share, a 15 per cent discount to yesterday’s closing price on the Hong Kong Stock Exchange. The shares were marketed in Hong Kong and Europe and purchased by 20 to 25 major institutional buyers, according to Alcoa spokesman Jake Siewert. The sale was handled by Goldman Sachs.
The company said it was spending $300 million to expand its Bohai rolling mill in Qinghuangdao, a coastal city east of Beijing. Alcoa formed several joint ventures in China in recent years as part of an effort to expand its presence there.