China's Citic Group acquires 13 % in Australia's Alumina for $467 mn

China International Trust and Investment Corporation (Citic Group) yesterday acquired a 13-per cent stake in Australia's Alumina Ltd, for A$452 million ($467 million).

State-owned Citic, through its listed arm Citic Resources Holdings and another subsidiary Citic Ltd, jointly acquired about 366 million of new shares at A$1.235 each, 3 per cent higher than Alumina's yesterday closing price.

Under the terms of the deal, Citic will get a board seat on Alumina Ltd and has the option to raise its stake to 15 per cent, capped at that level for two years, and beyond the two year period, it can further raise its stake to just below 20 per cent.

Alumina Limited CEO, John Bevan, said, ''This secures a strategic, long-term investor at a premium to our recent share price. CITIC's investment demonstrates their confidence in the alumina industry and their understanding of Alumina Limited's unique position in the global market.''

''We look forward to working with CITIC on ways to enhance the value of Alumina's interest in the AWAC joint venture,'' he added.

Australia and New York-listed Alumina holds a 40 per cent stake in Alcoa World Alumina & Chemicals (AWAC) in a joint venture with US aluminium giant Alcoa.