Rusal to acquire up to 50% in India's Pioneer alumina refinery

MOSCOW. March 14 (Interfax) - Rusal has signed an agreement with India's Pioneer and KCap to purchase the Pioneer Aluminium Industries Limited alumina refinery with capacity of 1.5 million tonnes per year, the Russian company said.

Rusal's subsidiary will acquire up to 50% of Pioneer in three stages, including 26% at the first stage for $243.75 million plus adjustments for the company's working capital and debt. All subsequent stages of the transaction will be paid pro rata.

The sellers and Rusal intend to supply bauxite to Pioneer and receive alumina from it in proportion to their respective stakes.

Pioneer owns an alumina refinery with capacity of 1.5 million tonnes per year, which could expand to 2 million tonnes, in the state of Andhra Pradesh, near the ports of Visakhapatnam, Gangavaram, and Kakinada.

Pioneer's shareholders are Penna Group (68%) and Rescom Group through its KCap Holdings (26%) investment arm.