Votorantim today signed a contract for the sale of its entire stake in Companhia Brasileira de Alumínio (CBA) to the Chinese Chinalco and the Anglo-Australian Rio Tinto for around R$4.7 billion, reported the newspaper Valor, which anticipated the progress of the negotiations.
The agreement provides for the transfer of 446.6 million shares, equivalent to 68.596% of CBA’s total and voting capital.
The deal values Votorantim’s majority stake at R$4.689 billion, considering the base price of R$10.50 per share, to be paid in full at the closing of the transaction, slightly above the market value. The CBA is valued at around R$6.7 billion.
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According to the Bloomberg agency, Rio Tinto intends to keep around 30% of the joint venture with Chinalco, which will have the majority of the capital of the company that will control CBA. Following the purchase, the plan is to make a public offer to acquire minority shares in the Brazilian aluminum manufacturer.
Grupo Votorantim was trying to find a partner for a $2.5 billion investment in CBA’s Rondón project to explore a bauxite mine in the Amazon, the people said. Chinalco ended up showing interest in acquiring control of CBA, according to the sources.
CBA has around 7,262 employees and produces aluminum and renewable energy.
