Alcan Australia raising funds

Press, 9 April 1977, Page 19

Alcan Australia raising funds

; NZPA Melbourne Alcan Australia. Ltd will .make a sAust7M cash issue, and is negotiating for a local S2SM loan to finance the first part of its S7OM expansion J programme. The project, which includes lifting the Kurri Kurri aluminium smelter’sj capacity from 45,000 tonnes' ! to 67,900 tonnes a year, was announced last week along: with plans for a SUS2SM Eurobond issue. The Australian currency borrowings were expected toj be arranged within the next i few weeks. The share isssue would be on the basis of one-for-four at 100 c a share.

An issue of shares had been chosen to increase the] company’s net tangible' asset -to-debt ratio, although; debt was Still well within the) 65 per cent maximum ; allowed by the trust deed. ' ; Alcan Aluminium. Ltd, the Canadian parent company, is to take up 4.9 million of the new shares, through Australian Aluminium. Ltd. This will leave 2.1 million : shares for Australian investors, and maintain local participation at 30 per cent, j The Australian part of the J ; issue will be under-written. The Australian institution witli which the comnany was' negotiating the S2SM loan was not named. The SUS2SM Eurobond; issue has been arranged ! through the Swiss Bank Corporation, Luxemburg, with the Deutsche Bank, and Morgan Stanley International' as co-managers. The S7OM investment will be made over the next foui ■ years, S4SM going to expand; production of the Kurri Kurri smelter. It is also planned to' modernise and expand fabri-' eating facilities, and $3.8’1 will be spent on pollutioncontrol equipment.