Chinese Citic Buys 13% of Alumina $452m

Chinese financial company CITIC has bought a 13 percent stake of aluminium producer Alumina (ASX:AWC) for $452 million.

• China based company Citic, will purchase more than 366 million new Alumina shares.
• Citic is a Chinese government owned investment company.
• Alumina chief executive John Bevan said, "Citic's investment demonstrates their confidence in the alumina industry and their understanding of Alumina Ltd's unique position in the global market. Citic's investment demonstrates their confidence in the alumina industry and their understanding of Alumina's unique position in the global market."
• Alumina owns 40 percent of Alcoa World Alumina and Chemicals (AWAC), which is its only earning asset. 60 percent is owned by Alcoa. AWAC owns aluminium smelters at Portland and at Point Henry plant in Victoria.
• The investment stake equates to 15 percent of Alumina's current capital base. The investment will represent 13.04 percent of Alumina's capital base after the transaction is completed.
• Alumina's full year results is due to be released next week.
• Australian Treasurer Wayne Swan has pre-approved the deal, as has China's National Development and Reform Commission.
• Citic's first investment in Australia was in 1986 with the acquisition of 22.5 percent of the Portland smelter.