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Current Status
Based on the inputs from the company, Daiwa has prepared and circulated Teaser about ANRAK
Aluminium (on a No-Name basis) to potentially interested companies globally, who, from our
understanding of the Alumina Refining and Aluminium Smelting industry, would be interested in this deal.
We have received interests from the following four companies for further considerations
1. Glencore International AG, Switzerland
Glencore is one of the largest Alumina and Aluminium trading companies in the world. They are
also involved in the production of primary Aluminium
2. Rio Tinto Alcan, Canada
Rio Tinto Alcan is one of five product groups operated by Rio Tinto, a leading international mining
group. They own 23 Aluminium smelters in 10 countries and are one of the leading companies in
the world who have a presence in the entire value chain of Aluminium manufacturing
3. Hangzhou Jinjiang Group, China
The Jinjiang Group is a large trading group focusing on non-ferrous metals in Asia. The group
has setup up a considerably competitive resource industrial chain in the non-ferrous metals
industry
4. Marubeni Corporation, Japan
The Marubeni Corporation is one of the leading Japanese trading companies, who focus on
metals, besides other products. Their trading activities include on-shore and off-shore trading in
Aluminium as well as manufacturing primary Aluminium (they have plans to setup an Aluminium
Smelter in Indonesia in the coming year)
After signing a Non-Disclosure Agreement, we have shared the Information Memorandum for ANRAK
Aluminium prepared by Daiwa after valuable inputs from ANRAK Aluminium. The Hangzhou Jinjiang
Group has already had a call with Mr. S. Ganapathi Rao.
Besides the above, we have already approached the below-mentioned companies for the deal, and are
awaiting a response from them:
1. Mitsubishi Corp., Japan
2. Mitsui Corp., Japan
3. Itochu Corp., Japan
4. Rusal, Russia
We would also like to add other names such as EMAL, Dubal, Sohar, etc
Timeline
We wish to follow the below-mentioned broad timeline to take this project ahead:
Quantity: Anywhere from 25-40% of the production, typical deals are for 40-50% of production
(Glencore has also done deals at 15% of production)
Retainer Fees:
o
Since the deal takes time and effort and involves employees globally, we would suggest
a fee of Rs. 5.0 lacs (five lacs) per months for the next 5 months, within which we will
close the deal and exclusivity of 6 months.
The retainer fees will be adjusted against the eventual success fees
Success Fees:
o
Typically linked to transaction value of Equity and Value of 1st yrs off-take contract