Press Metal up 1.86% this morning

PETALING JAYA: Press Metal Aluminium Holdings Bhd rose as much as 1.86% to RM4.92 this morning, after announcing the acquisition of a 50% stake in Japan Alumina Associates (Australia) Pty Ltd (JAA) for A$250 million (RM738.98 million) yesterday.

At 11.26 am, the stock was trading at RM4.89 with some 1.20million shares done.

Press Metal told Bursa that its 80%-owned subsidiary Press Metal Bintulu Sdn Bhd (PMBintulu) had on Oct 17 entered into an asset sale agreement with ITOCHU Minerals & Energy of Australia Pty Ltd and ITOCHU Corp for the acquisition.

JAA holds 10% participation interest in the Worsley Alumina unincorporated which owns and operates the Worsley Alumina Project, one of the world’s largest and lowest cost alumina producers.

Press Metal said the acquisition will provide the group the opportunity to access 5% of the annual production of the Worsley Alumina project which amounts to 230,000 metric tonnes of alumina per annum.

“The acquisition is an effective approach towards ensuring Press Metal’s long term access to raw material and reduces its exposure and reliance on third party suppliers.”

The proposed acquisition, which will be fully funded via external bank borrowings, is expected to be completed by the first quarter of 2019.

Source: The Sun Daily

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