Hindalco Industries set foot to divest entire stake in wholly-owned step-down subsidiary Hindalco Do Brasil

On 25^th February 2022, the Mumbai, India headquartered Hindalco Industries publicized that it has entered into a share purchase agreement with Terrabel Empreedimentos Ltda, to divest the entire equity shareholding of Hindalco Do Brazil Industria Comercia de Alumina LTDA (HDB). Terrabel Empreedimentos Ltda, a Brazilian firm who are in the business of commercial and industrial machinery and equipment rental and leasing.

The Brazil-based Hindalco Do Brazil Industria Comercia de Alumina with its head office in Ouro Preto is a wholly owned step-down subsidiary of Hindalco Industries, the metals flagship company of the Aditya Birla Group, and is the world's largest aluminium rolling and recycling company. However, the consideration received from disposal is one Brazilian real, whereas, Hindalco anticipates accomplishment of sale by 3^rd March 2022.

Hindalco Do Brasil (HDB) is in the business of alumina refinery and holding bauxite mining assets in Brazil. This alumina refinery has the capacity of 145 thousand metric tonnes ideally suited for speciality products that cater to wide industrial applications. This is one of the largest speciality alumina producers in Brazil with a 56 % (in FY20) domestic market share. HDB holds good quality bauxite reserves which are among the largest in Minas Gerais. This plant has excellent multi-modal connectivity to key ports in Brazil.

The alumina refinery has state of art technologies to produce high purity alumina (99.9 %) and low soda, bimodal reactive alumina. Although, skilled on-ground technical teams with new product development capability is available to scale up operations and unlock value.

source https://www.alcircle.com/news/hindalco-industries-set-foot-to-divest-entire-stake-in-wholly-owned-step-down-subsidiary-hindalco-do-brasil-76732