São Paulo 06/10/2016 - Metal Bulletin - By Danielle Assalve
Alcoa shareholders have approved the split of the company’s stock and the proportional reduction in the total number of its common shares, the US lightweight materials firm said on Wednesday October 5.
In a special meeting held earlier on Wednesday, shareholders were asked to vote on a proposal involving a reverse stock split of Alcoa’s common shares at a ratio of 1:3 and the proportionately reduction of its total number to 600 million, from 1.8 billion.
Following the shareholders’ approval, Alcoa’s shares will begin trading on a split-adjusted basis as of October 6, the company said. The shares are negotiated at the New York Stock Exchange (NYSE).
The applicable articles of amendment were filed in the Pennsylvania Department of State on October 5, Alcoa added.
The approval of the stock split happens as Alcoa moves to separate into two independent, publicly traded companies by November 1.
This separation will lead to the creation of a downstream company called Arconic and an upstream company which will keep the Alcoa name (Alcoa Corporation).