 |
 |
||||||
[May 2003]
Alcoa to Acquire Minority Interests in South American Operations
Alcoa (Pittsburgh, PA, USA) announced on 5 May 2003 that it had reached an agreement in principle with Camargo Correa Group to acquire its 40.9% shareholding in Alcoa's South American operations, which the Brazilian company has held since 1984. Alcoa will issue to the Camargo Group US$410 million of Alcoa common stock, which equates to approximately 18 million shares, in exchange for the Camargo Group's holdings. Additional consideration tied to future performance of the acquired entities over the next five years could apply, but would be limited by any appreciation in Alcoa's stock price.
This shareholding in Alcoa's South American operations includes Alcoa businesses in Brazil, Argentina, Chile, Uruguay, Peru, Colombia and Venezuela.
Alcoa expects the acquisition to be accretive to earnings within the first 12 months. The transaction is expected to be completed by the end of the third quarter of 2003.
The Camargo Group is a leading contractor and industrial conglomerate based in Brazil. It was founded in 1939 and has grown into the largest construction company in the country. It is a major investor in Brazil's privatised infrastructure as well as investments in cement, textiles and real estate.
ENDS