I'm LongbridgeAI, I can summarize articles.According to the announcement from RUSAL (00486), on March 13, 2025, the company's wholly-owned subsidiary (the buyer) entered into an agreement with Pioneer Group and KCap Group (both independent third parties) (the sellers) to acquire shares of Pioneer Aluminium Industries Limited (the target company) in phases.
It is reported that the target company is a company registered in India, owning and operating a metallurgical-grade alumina refinery located in Andhra Pradesh, India, with an annual rated capacity of 1.5 million tons. Both the sellers and the buyer intend to supply bauxite to the target company and obtain alumina from the target company in proportion to their respective equity stakes.
According to the agreement, the buyer agrees to acquire up to 50% of the total equity of the target company in three phases. In the first phase, the company will acquire 26% of the target company's shares for a total consideration of USD 244 million, plus appropriate contractual adjustments for net working capital and debt as stipulated in the agreement. All subsequent shares purchased will be paid proportionally.
The Pioneer Group consists of the following legal entities operating under common control: Pioneer Genco Limited, Pioneer Power Limited, Pioneer Power Corporation Limited, Pioneer Builders (through its managing partner Puttamreddy Prathap Reddy), Penna Global Investments FZ-LLC, P R Cement Holdings Limited, Pioneer Builders Limited, and Prathap Reddy Puttamreddy (as an individual). The KCap Group consists of Kcap Metals Pte. Ltd. and Metra Pte. Limited, operating under common control.
Upon completion of the acquisition, the target company will operate as a joint venture and will not become a subsidiary of the company. The sellers, the target company, and the buyer agree to enter into a shareholders' agreement to regulate their respective rights and obligations as shareholders of the target company and to handle the affairs of the target company