The transaction includes roughly 86 million Ma’aden shares, valued at $950 million based on the 30-day volume-weighted average share price as of September 12, 2024, along with an additional $150 million in cash.
The joint venture, established in 2009 as a fully integrated mining complex in Saudi Arabia, now consists of two entities: the Ma’aden Bauxite and Alumina Company (MBAC), which operates the bauxite mine and alumina refinery, and the Ma’aden Aluminium Company (MAC), responsible for the aluminium smelter and casthouse. Alcoa holds a 25.1 per cent ownership stake in the venture, while Ma’aden controls 74.9 per cent. As of June 30, 2024, Alcoa’s investment was valued at $545 million.
According to Alcoa's Press Release on its website, "Pursuant to the terms of the Agreement, Alcoa will hold its Ma'aden shares for a minimum of three years, with one-third of the shares becoming transferable after each of the third, fourth and fifth anniversaries of closing of the transaction (the "holding period"). During the holding period, Alcoa would be permitted to hedge and borrow against its Ma'aden shares. Under certain circumstances, such minimum holding period would be reduced. Pro forma for the transaction, Alcoa would own approximately 2 per cent of Ma'aden's current shares outstanding."
