Hindalco Industries Ltd. has finalized its arrangement for acquiring Alumina Refinery and Bauxite Mines from Novelis Do Brasil Ltda., a wholly-owned subsidiary of Novelis inc.
The agreement was executed between Novelis Do Brasil, Novelis Inc. and AV Minerals (Netherlands) B.V., a wholly-owned subsidiary of Hindalco Industries Ltd.
The Alumina Refinery, with a capacity of 145 KPTA, situated in the city of Ouro Preto, State of Minas Gerias, Brazil, has Mining Rights of over 50 million tonnes of Bauxite reserves.
This transaction will be done by transferring the Alumina Assets of Novelis Do Brasil into a new company to be formed in Brazil and acquisition of all the shares of the new company by AV Minerals.
The acquisition will take place after all necessary approvals and permits for restarting the idle facilities and operations of the company are obtained in Brazil.
In June 2009, Novelis Do Brasil had suspended the production of alumina at this refinery. This corporate reorganization will allow the new company, with its sole focus on Mining and Alumina business, to create value out of the moth-balled assets for all the stakeholders, while Novelis Do Brasil will continue to focus on its core downstream aluminium rolling business.
AT the BSE, Hindalco Industries shares are currently trading at Rs.123.60, up 1.10 percent from the previous close.
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