VANCOUVER (miningweekly.com) – NYSE-listed specialty alloys manufacturer Arconic has sold about 60% of its 19.9% stake in its former downstream business segment Alcoa Corp for $890-million.
Arconic, which makes lightweight, high-strength components for the aeronautics and automotive industries, sold 23.35-million of the 36.31-million shares it had retained in Alcoa following its demerger in November last year.
Arconic this week said the proceeds would bolster the company’s cash balance, which provides financial flexibility to pay down debt and/or pursue share repurchases, based on a relative-return assessment. The timing and structure of the transaction will reduce risk and transaction costs.
Arconic has carry-forward tax attributes in the US that are available to offset US taxable income and will use existing tax attributes to the extent possible.