Mumbai: Aditya Birla group flagship Hindalco Industries today said it has the first right to buy the stake held by global aluminium giant Alcan in their joint venture (JV) Utkal Alumina, but is yet to take a decision on whether to purchase the Canadian firm’s shareholding.
In terms of the shareholders’ agreement with Alcan, the company has pre-emptive purchase rights over Alcan’s shareholding, Hindalco informed the Bombay Stock Exchange (BSE).
However, Hindalco is yet to evaluate the terms and conditions and make recommendations to its board regarding this, it added.
Alcan Inc announced on 13 April its plan to sell its stake in Utkal Alumina International. The Montreal-based firm said it has taken initial steps for selling the stake and hoped to complete the deal in the second quarter of 2007.
Hindalco holds 55% in the joint venture, while Alcan has 45% stake.
The JV was established in 1992 for development of a new bauxite mine and alumina refinery in Orissa. The project is currently in an engineering phase.
If Hindalco buys Alcan’s stake in Utkal Alumina it would another big investment by the company which recently acquired a former Alcan group firm Novelis in a six billion dollar transaction.
Shares of Hindalco Industries were trading at Rs145.25, up 0.38 per cent on the BSE.