Australian Court Proceedings Convene Alumina
Limited Shareholder Vote
Independent Expert Report Assesses Transaction
as Fair and Reasonable
Alcoa Corporation (NYSE: AA or “Alcoa”) today announced that it
has reached several key milestones in its acquisition of Alumina
Limited (“Alumina”) and expects the transaction to be completed on
or about August 1, 2024, subject to the satisfaction of customary
conditions.
The milestones include:
- Alcoa filed its definitive proxy statement with the Securities
and Exchange Commission on June 6, 2024, and scheduled the Special
Meeting of Shareholders to vote on the transaction for July 16,
2024.
- Alcoa received regulatory approvals from Brazil’s
Administrative Council for Economic Defense (CADE) for the
acquisition on May 13, 2024; and the Australian Competition and
Consumer Commission, which has indicated it does not intend to
conduct a public review of the transaction.
- Alumina has registered its Scheme Booklet with the Australian
Securities and Investments Commission (ASIC), and the Scheme
Booklet will be sent to Alumina shareholders following orders from
the Federal Court of Australia on June 7, 2024, to dispatch the
Scheme Booklet and convene a shareholder meeting to conduct a vote.
Alumina shareholders are slated to vote on the acquisition July 18,
2024. The Court also has ordered that a second court hearing,
should the Alumina shareholder vote be successful, will take place
on July 22, 2024, to approve the results of the shareholder
vote.
“I am very pleased with the progress our team is making to
complete this value-enhancing transaction with Alumina Limited,”
said Alcoa President and CEO William F. (Bill) Oplinger. “Acquiring
Alumina Limited aligns with our long-term strategy to bolster our
position as a leading pure play, upstream aluminum company
globally. We are looking forward to realizing the long-term
benefits of the transaction to both companies’ shareholders, and
broader stakeholders and communities following the completion.”
The Court proceedings are part of the statutory process in
Australia and are required to convene the Alumina shareholders to
vote on the acquisition.
An Independent Expert Report (IER) together with the Scheme
Booklet was publicly released on the ASX on June 11, 2024 (AEST)
following registration of the Scheme Booklet with ASIC. The IER
states that the transaction is fair and reasonable and therefore is
in the best interests of the Alumina shareholders, in the absence
of a superior proposal.
The transaction remains subject to approval by both companies’
shareholders and receipt of approval from Australia’s Foreign
Investment Review Board. The transaction is not conditional on due
diligence or financing.
Transaction Website
Associated materials regarding the transaction are available on
the investor relations section of Alcoa’s website at www.alcoa.com
as well as a transaction website at www.strongawacfuture.com.
Advisors
J.P. Morgan Securities LLC and UBS Investment Bank are acting as
financial advisors to Alcoa, and Ashurst and Davis Polk &
Wardwell LLP are acting as its legal counsel.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina
and aluminum products with a vision to reinvent the aluminum
industry for a sustainable future. With a values-based approach
that encompasses integrity, operating excellence, care for people
and courageous leadership, our purpose is to Turn Raw Potential
into Real Progress. Since developing the process that made aluminum
an affordable and vital part of modern life, our talented Alcoans
have developed breakthrough innovations and best practices that
have led to greater efficiency, safety, sustainability and stronger
communities wherever we operate.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company
developments and financial performance through its website,
www.alcoa.com, as well as through press releases, filings with the
Securities and Exchange Commission, conference calls and webcasts.
The Company does not incorporate the information contained on, or
accessible through, its corporate website into this press
release.
Forward-Looking Statements
This communication contains statements that relate to future
events and expectations and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “aims,” “ambition,” “anticipates,”
“believes,” “could,” “develop,” “endeavors,” “estimates,”
“expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,”
“potential,” “plans,” “projects,” “reach,” “seeks,” “sees,”
“should,” “strive,” “targets,” “will,” “working,” “would,” or other
words of similar meaning. All statements by Alcoa Corporation
(“Alcoa”) that reflect expectations, assumptions or projections
about the future, other than statements of historical fact, are
forward-looking statements, including, without limitation,
statements regarding the proposed transaction; the ability of the
parties to complete the proposed transaction; the expected benefits
of the proposed transaction; the competitive ability and position
following completion of the proposed transaction; forecasts
concerning global demand growth for bauxite, alumina, and aluminum,
and supply/demand balances; statements, projections or forecasts of
future or targeted financial results, or operating performance
(including our ability to execute on strategies related to
environmental, social and governance matters); statements about
strategies, outlook, and business and financial prospects; and
statements about capital allocation and return of capital. These
statements reflect beliefs and assumptions that are based on
Alcoa’s perception of historical trends, current conditions, and
expected future developments, as well as other factors that
management believes are appropriate in the circumstances.
Forward-looking statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties, and
changes in circumstances that are difficult to predict. Although
Alcoa believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained and
it is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties. Such risks and uncertainties include, but
are not limited to: (1) the non-satisfaction or non-waiver, on a
timely basis or otherwise, of one or more closing conditions to the
proposed transaction; (2) the prohibition or delay of the
consummation of the proposed transaction by a governmental entity;
(3) the risk that the proposed transaction may not be completed in
the expected time frame or at all; (4) unexpected costs, charges or
expenses resulting from the proposed transaction; (5) uncertainty
of the expected financial performance following completion of the
proposed transaction; (6) failure to realize the anticipated
benefits of the proposed transaction; (7) the occurrence of any
event that could give rise to termination of the proposed
transaction; (8) potential litigation in connection with the
proposed transaction or other settlements or investigations that
may affect the timing or occurrence of the contemplated transaction
or result in significant costs of defense, indemnification and
liability; (9) the impact of global economic conditions on the
aluminum industry and aluminum end-use markets; (10) volatility and
declines in aluminum and alumina demand and pricing, including
global, regional, and product-specific prices, or significant
changes in production costs which are linked to LME or other
commodities; (11) the disruption of market-driven balancing of
global aluminum supply and demand by non-market forces; (12)
competitive and complex conditions in global markets; (13) our
ability to obtain, maintain, or renew permits or approvals
necessary for our mining operations; (14) rising energy costs and
interruptions or uncertainty in energy supplies; (15) unfavorable
changes in the cost, quality, or availability of raw materials or
other key inputs, or by disruptions in the supply chain; (16) our
ability to execute on our strategy to be a lower cost, competitive,
and integrated aluminum production business and to realize the
anticipated benefits from announced plans, programs, initiatives
relating to our portfolio, capital investments, and developing
technologies; (17) our ability to integrate and achieve intended
results from joint ventures, other strategic alliances, and
strategic business transactions; (18) economic, political, and
social conditions, including the impact of trade policies and
adverse industry publicity; (19) fluctuations in foreign currency
exchange rates and interest rates, inflation and other economic
factors in the countries in which we operate; (20) changes in tax
laws or exposure to additional tax liabilities; (21) global
competition within and beyond the aluminum industry; (22) our
ability to obtain or maintain adequate insurance coverage; (23)
disruptions in the global economy caused by ongoing regional
conflicts; (24) legal proceedings, investigations, or changes in
foreign and/or U.S. federal, state, or local laws, regulations, or
policies; (25) climate change, climate change legislation or
regulations, and efforts to reduce emissions and build operational
resilience to extreme weather conditions; (26) our ability to
achieve our strategies or expectations relating to environmental,
social, and governance considerations; (27) claims, costs and
liabilities related to health, safety, and environmental laws,
regulations, and other requirements, in the jurisdictions in which
we operate; (28) liabilities resulting from impoundment structures,
which could impact the environment or cause exposure to hazardous
substances or other damage; (29) our ability to fund capital
expenditures; (30) deterioration in our credit profile or increases
in interest rates; (31) restrictions on our current and future
operations due to our indebtedness; (32) our ability to continue to
return capital to our stockholders through the payment of cash
dividends and/or the repurchase of our common stock; (33) cyber
attacks, security breaches, system failures, software or
application vulnerabilities, or other cyber incidents; (34) labor
market conditions, union disputes and other employee relations
issues; (35) a decline in the liability discount rate or
lower-than-expected investment returns on pension assets; and (36)
the other risk factors discussed in Part I Item 1A of Alcoa’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2023 and other reports filed by Alcoa with the SEC. These risks, as
well as other risks associated with the proposed transaction, are
more fully discussed in the proxy statement. Alcoa cautions readers
not to place undue reliance upon any such forward-looking
statements, which speak only as of the date they are made. Alcoa
disclaims any obligation to update publicly any forward-looking
statements, whether in response to new information, future events
or otherwise, except as required by applicable law. Market
projections are subject to the risks described above and other
risks in the market. Neither Alcoa nor any other person assumes
responsibility for the accuracy and completeness of any of these
forward-looking statements and none of the information contained
herein should be regarded as a representation that the
forward-looking statements contained herein will be achieved.
Additional Information and Where to Find It
This communication does not constitute an offer to buy or sell
or the solicitation of an offer to buy or sell any securities. This
communication relates to the proposed transaction. On June 6, 2024,
Alcoa filed with the SEC a definitive proxy statement on Schedule
14A (the “Proxy Statement”) in connection with the proposed
transaction. Other documents regarding the proposed transaction may
be filed with the SEC. This communication is not a substitute for
the Proxy Statement or any other document that Alcoa may file with
the SEC and send to its stockholders in connection with the
proposed transaction. The issuance of the stock consideration in
the proposed transaction will be submitted to Alcoa’s stockholders
for their consideration. The Proxy Statement contains important
information about Alcoa, the proposed transaction and related
matters. Before making any voting decision, Alcoa’s stockholders
should read all relevant documents filed or to be filed with the
SEC completely and in their entirety, including the Proxy
Statement, as well as any amendments or supplements to those
documents, because they contain or will contain important
information about Alcoa and the proposed transaction.
Alcoa’s stockholders will be able to obtain a free copy of the
Proxy Statement, as well as other filings containing information
about Alcoa, free of charge, at the SEC’s website (www.sec.gov).
Copies of the Proxy Statement and other documents filed by Alcoa
with the SEC may be obtained, without charge, by contacting Alcoa
through its website at https://investors.alcoa.com/.
Participants in the Solicitation
Alcoa, its directors, executive officers and other persons
related to Alcoa may be deemed to be participants in the
solicitation of proxies from Alcoa’s stockholders in connection
with the proposed transaction. Information about the directors and
executive officers of Alcoa and their ownership of common stock of
Alcoa is set forth in the section entitled “Information about our
Executive Officers” included in Alcoa’s annual report on Form 10-K
for the fiscal year ended December 31, 2023, which was filed with
the SEC on February 21, 2024 (and which is available at
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/1675149/000095017024018069/aa-20231231.htm),
in the section entitled “Director Nominees” included in its proxy
statement for its 2024 annual meeting of stockholders, which was
filed with the SEC on March 19, 2024 (and which is available at
https://www.sec.gov/ix?doc=/Archives/edgar/data/1675149/000119312524071354/d207257ddef14a.htm),
and in the sections entitled “Security Ownership of Certain
Beneficial Owners and Management” and “Interests of Alcoa Executive
Officers and Directors in the Transaction” included in the Proxy
Statement, which was filed with the SEC on June 6, 2024 (and which
is available at
https://www.sec.gov/Archives/edgar/data/1675149/000119312524156116/d827161ddefm14a.htm).
Additional information regarding the persons who may, under the
rules of the SEC, be deemed participants in the proxy solicitation
and a description of their direct and indirect interests, by
security holdings or otherwise, will be included in other relevant
materials to be filed with the SEC in connection with the proposed
transaction when they become available. Free copies of these
documents may be obtained as described in the preceding
paragraph.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240610103786/en/
Investor Contact: Jim Dwyer James.Dwyer@alcoa.com
Media Contact: Courtney Boone Courtney.Boone@alcoa.com
Additional Media Contacts Australia Citadel MAGNUS
Paul Ryan +61 409 296 511 pryan@citadelmagnus.com United
States Joele Frank, Wilkinson Brimmer Katcher Sharon Stern /
Kaitlin Kikalo / Lyle Weston Alcoa-jf@joelefrank.com
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