Rio Tinto, Chalco to acquire Votorantim’s 68.596% controlling share

Rio Tinto (RIO) and Aluminum Corporation of China have entered into a definitive agreement with Votorantim to acquire, through a joint venture to be owned 33% by Rio Tinto and 67% by Chalco, Votorantim’s 68.596% controlling shareholding in Companhia Brasileira de Aluminio. The Transaction, at an all cash consideration of R$10.50 per share in CBA, represents a premium of approximately 21.2% over the R$8.67 per share weighted average trading price of CBA’s stock for the 20 trading days prior to the signing of the Transaction Agreement and values Votorantim’s shareholding in CBA at approximately $902.6 million, subject to closing adjustments and the other terms of the Transaction Agreement, including satisfaction of regulatory approvals and customary closing conditions. Following closing, the Joint Venture will launch a mandatory tender offer for the remaining shares in CBA not held by Votorantim, as required by Brazilian law.