UPDATE: Century Aluminum Stock Bounces 13% on Aluminum Smelter Buy

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Century Aluminum ( CENX ) has continued to build on early gains, bouncing more than 13% as investors respond positively to earlier news that it agreed to buy substantially all the assets of the Sebree aluminum smelter from a subsidiary of Rio Tinto Alcan, Inc.

Sebree, located in Henderson County, Kentucky, employs over 500 men and women and has an annual production capacity of 205,000 metric tons of primary aluminum.

Under the agreement, Century will acquire the smelter for $61 million in cash (after $4 million in purchase price deductions) and will receive $71 million in working capital, subject to customary adjustments.


As part of the deal RTA will retain all historical environmental liabilities of the Sebree smelter and has agreed to fully fund the pension plan being assumed by Century at closing.

The shares trade in a 52-week range of $5.52 - $9.70.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: CENX

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