Hindalco completes Utkal acquisition, makes it 100-per cent subsidiary
08 October 2007Mumbai: Aditya Birla Group firm Hindalco Industries has completed acquisition of the entire stake of Canadian company Alcan Inc in Orissa-based Utkal Alumina International, making it its 100 per cent subsidiary.
Hindalco acquired 78,564,384 shares in Utkal Alumina International, comprising the entire stake of Alcan, the company said in a filing with the Bombay Stock Exchange (BSE).
Hindalco already held 55 per cent in Utkal Alumina. It announced the acquisition of the remaining 45 per cent stake held by the Canadian company on 18 July. Hindalco, however, did not disclose the cost of the transaction.
This marks the exit of Alcan from the Utkal project. Alcan will have no surviving rights or obligations, as Hindalco becomes the 100 per cent owner of Utkal Alumina.
"Alcan is pleased to have reached this agreement with Hindalco regarding the sale of its participating interest in Utkal. The company values its long-standing partnership with Hindalco, with whom it remains associated as to Utkal project," Alcan bauxite and alumina president and CEO Jacynthe Cote said.
The Hindalco-Alcan JV was established in 1992 and involved development of a new bauxite mine and alumina refinery in Orissa.
Hindalco and Alcan will continue business association as Alcan has ongoing contracts with Novelis, which Hindalco acquired earlier in the year. Alcan is also the technology provider to Utkal Alumina and some other alumina projects of Hindalco.