Alcoa Details Plans to Split
June 29 2016 - 7:40AM
Dow Jones News
Alcoa Inc. provided further details Wednesday of its plans to
separate its more-profitable assets focused on the aerospace and
automobile industries from its less-promising mining, refining and
smelting business, which has been dragged down by the commodities
bust.
Alcoa said it would spin off the less-promising businesses into
a company that would keep the Alcoa name and seek to continue
trading under the stock symbol "AA" on the New York Stock
Exchange.
The parent company will keep the businesses that make
multimaterial products serving the aerospace, automotive,
transportation, and building and construction markets, such as
commercial vehicle wheels and jet gas turbine airfoils. The
existing publicly traded company will be renamed Arconic and change
its ticker symbol to "ARNC."
Alcoa announced its plans to split in September; Wednesday,
Alcoa filed the initial separation form with the Securities and
Exchange Commission that officially begins the process. Alcoa
didn't say when the split would occur, other than it was on track
for the second half of this yea.
The company said that at least 80.1% of the spun-off company
will be distributed to shareholders and that about 19.9% of the
spun-off smelting business will be owned by Arconic.
Alcoa said it would issue about $1 billion of debt through term
loans and notes and would pay a substantial portion of the proceeds
to Arconic.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
June 29, 2016 08:25 ET (12:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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