Hindalco says it has pre-emptive right to buy Alcan stake

Birla group flagship Hindalco Industries today said it has the first right to buy the stake held by global aluminium giant Alcan in their joint venture Utkal Alumina, but is yet to take a decision on whether to purchase the Canadian firm's shareholding. In terms of the shareholders'' agreement with Alcan, the company has pre-emptive purchase rights over Alcan's shareholding, Hindalco informed the Bombay Stock Exchange. However, Hindalco is yet to evaluate the terms and conditions and make recommendations to its board regarding this, it added. Alcan Inc announced on April 13 its plan to sell its stake in Utkal Alumina International. The Montreal-based firm said it has taken initial steps for selling the stake and hoped to complete the deal in the second quarter of 2007. Hindalco holds 55 per cent in the joint venture, while Alcan has 45 per cent stake.