South32 agreed to sell its aluminium value chain assets to Alcoa for an implied enterprise value of up to $5.6bn. The consideration includes $3.1bn in cash, $1bn in Alcoa shares, about $750m of assumed net debt and lease liabilities, and up to $750m in price linked cash payments through 2030. The transaction simplifies South32 into a base metals focused miner, with expected annual overhead savings of about $125m and an initial shareholder return of about $500m through a fully franked special dividend.
Click here to read the SENS