Alcan Inc. announced
today that it has completed the sale of its controlling interest in Aluminium
de Grèce (AdG) to Mytilineos Holdings S.A. and certain affiliated companies
(Mytilineos). An agreement on the sale was announced December 29, 2004, and
its completion follows the approval by the Greek Competition Commission and
the Greek Ministry of Development.
"We are pleased to have completed this transaction and welcome the
commitment demonstrated by Mytilineos toward AdG's long term success," said
Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal
Alcan owned approximately 13 million shares in AdG, representing a
60.2 percent equity interest. Under the terms of the agreement, Mytilineos has
acquired a 53 percent equity position in AdG from Alcan. The parties have also
entered into various agreements to continue to supply certain products and
services, including bauxite and a broad range of technical and industrial
services, as well as the transfer of alumina supply contracts to Mytilineos
and for the supply of alumina to Alcan. The total transaction value is
(euro) 79.5 million (approximately US$107 million).
The balance of Alcan's interest in AdG, some 7.2 percent, may be sold by
Alcan to Mytilineos one year after closing, pursuant to a three-month put
option. After that, subject to certain conditions Mytilineos will have a call
option for six months to purchase the remaining interest. If the option is
exercised, the additional proceeds would be (euro) 10.8 million.