Alcoa Board OKs Split Into Alcoa Corp. And Arconic, Expected Effective Nov. 1

(RTTNews) - Alcoa Inc. (AA), the largest producer of aluminum in the US, announced that its board of directors has approved the completion of the Company's separation into two independent, publicly-traded companies Arconic Inc and Alcoa Corp. The separation is scheduled to become effective before the opening of the market on November 1, 2016.

At the time of separation, shareholders of Alcoa Inc. will retain their shares of Alcoa Inc. Due to the name change of Alcoa Inc. to Arconic Inc. upon separation, these shares will become Arconic Inc. shares.

Upon separation, Klaus Kleinfeld will serve as Arconic Chairman and CEO. Michael Morris will become non-executive Chairman of Alcoa Corporation and Roy Harvey, current Group President of the Alcoa Global Primary Products business, will be its CEO.

Arconic will be a provider of high-performance materials and engineered products and Alcoa Corporation will be a miner and aluminum maker.

As previously announced, the separation will occur by means of a pro rata distribution by Alcoa Inc. of 80.1 percent of the outstanding common stock of Alcoa Corporation. Arconic will retain 19.9 percent of Alcoa Corporation common stock.

Following the completion of the separation, the board of directors of each company will review and determine the dividend policy of each company.

Alcoa said it will hold a special shareholder meeting on Oct. 5 to seek approval of a reverse split of common stock at a ratio of 1 for 3 and authorized share count reduction.

If the reverse stock split is approved, shareholders will receive one share of Alcoa Corp common stock for every three shares of Alcoa Inc common stock held as of Oct 20, at the time of separation.

If the reverse stock split is not approved, Alcoa Inc shareholders will receive one share of Alcoa Corp common stock for every nine shares of Alcoa Inc common stock held as of the record date.

Seperately, Alcoa board declared dividends on its $3.75 cumulative preferred stock ("Class A Stock") and on its common stock. The dividend declared on the Class A Stock is 93.75 cents per share of Class A Stock, payable January 1, 2017, to holders of record of the Class A Stock at the close of business on December 9, 2016.

The board also declared a quarterly common stock dividend of 9 cents per share, payable November 25, 2016, to holders of record of the common stock at the close of business on November 4, 2016.