Hindalco says it has pre-emptive right to buy Alcan
Aditya Birla group flagship Hindalco Industries says it has the first right to buy the stake held by global aluminium giant Alcan.business Updated: Apr 17, 2007 17:20 IST
Aditya Birla group flagship Hindalco Industries on Tuesday said it has the first right to buy the stake held by global aluminium giant Alcan in their joint venture Utkal Alumina, but is yet to take a decision on whether to purchase the Canadian firm's shareholding.
In terms of the shareholders' agreement with Alcan, the company has pre-emptive purchase rights over Alcan's shareholding, Hindalco informed the Bombay Stock Exchange.
However, Hindalco is yet to evaluate the terms and conditions and make recommendations to its board regarding this, it added.
Alcan Inc announced on April 13 its plan to sell its stake in Utkal Alumina International.
The Montreal-based firm said it has taken initial steps for selling the stake and hoped to complete the deal in the second quarter of 2007.
Hindalco holds 55 per cent in the joint venture, while Alcan has 45 per cent stake.
The JV was established in 1992 for development of a new bauxite mine and alumina refinery in Orissa. The project is currently in an engineering phase.
If Hindalco buys Alcan's stake in Utkal Alumina it would another big investment by the company which recently acquired a former Alcan group firm Novelis in a six billion dollar transaction.
Shares of Hindalco Industries were trading at Rs 145.25, up 0.38 per cent on the BSE.