Commercial Comalco to proceed with share issue

Press, 18 February 1978, Page 14

Commercial Comalco to proceed with share issue

Comalco Limited, confirms that the plans will proceed for the company to make a share issue, and purchase a greater holding in Queensland Alumina, Ltd, and sell its holdings in Dampier Salt, Ltd, and West Pacific Salt, Ltd. Comalco will purchase the 12.5 per cent shareholding of Conzinc Riotinto of Australia. Ltd, in Queensland Alumina as well as 4 per cent from Kaiser Aluminium. Comalco is to sell to C.R.A. its 50 per cent intrest in Dampier Salt, and West Pacific Salt. The main purpose of the purchase by Comalco of these shareholdings in .Queensland Alumina is to strengthen its raw material position by insuring additional alumina supplies to meet present and future requirements.

in its preliminary profit re

port last week, Comalco said that the proposed rearrangement of interests was conditional upon the obtaining of a number of consents and government approvals, including those of the boards of the various companies, and shareholders in Comalco. Included in these conditions was a decision by the United States Internal Revenue Service which was acceptable to Kaiser Aluminium. Although an unfavourable I.R.S. ruling was received by Kaiser Aluminium discussions have taken place between the parties, and they have agreed to proceed with the transaction. The proposed rearrangement, of interests will now be subject to the approval of Comalco’s shareholders, and a general meeting will be called. The company plans to issue further shares as part

of the re-arrangement so that existing shareholdings in the company will be maintained, with C.R.A., and Kaiser Aluminium holding 45 per cent each, and the public 10 per cent. The terms, and other details of the share issue will be announced with the date for the general meeting to approve the proposal.

As a result of the rearrangement, Comalco’s holding in Queensland Alumina will be increased from 13.8 per cent to 30.3 per cent. Kaiser Aluminium’s interest will fall from 32.3 per cent to 28.3 per cent. The other shareholders in Queensland Alumina are Alcon (21:4 per cent) and Pechiney (20 per cent). Comalco supplies bauxite from Weipa to all participants in Queensland Alumina under long-term contracts.