SYDNEY, AUSTRALIA: Alumina Limited has announced the signing of a Scheme Implementation Deed with Alcoa Corporation, paving the way for Alcoa to acquire all outstanding shares of Alumina. This transaction will see Alumina shareholders receive 0.02854 shares of Alcoa common stock for each share of Alumina, representing a 19.5% premium over the past year’s average exchange ratio.

Upon completion, Alumina shareholders are set to own approximately 31.6% of the new combined entity, with current Alcoa shareholders holding the remaining 68.4%. Additionally, Alcoa will establish a foreign exempt listing on the ASX, allowing for seamless trading of Alcoa common stock by Alumina shareholders.

The merger is expected to deliver significant benefits, including the unification of Alcoa World Alumina and Chemicals (AWAC), increased exposure to the aluminium market, an enhanced capital structure, and a robust platform for future growth. Alumina Chairman Peter Day expressed confidence in the merger, highlighting the combined entity’s stronger balance sheet and strategic positioning in the aluminium industry, crucial for energy transition and decarbonisation.

The transaction is subject to customary closing conditions and approvals, with both companies optimistic about the value and opportunities this merger will bring to shareholders and the broader market.

Alumina Chairman, Peter Day, said: “We believe the time is right to combine our two companies.
The combined entity will have a larger and stronger balance sheet, and be better able to fund the current portfolio restructuring actions in AWAC, as well as realising potential growth options in the medium to longer term.

Alumina shareholders will participate in a leading global pure play upstream
aluminium company, with a low carbon smelting portfolio.”