Alcoa of Australia has agreed to sell its stake in DBP, the owner and operator of the Dampier to Bunbury Natural Gas Pipeline (DBNGP), to Duet Group (Duet) for A$205 million.
The company said that as part of the transaction, it will maintain its current access to approximately 30% of the DBNGP transmission capacity for gas supply to its three alumina refineries in Western Australia.
“The sale is expected to close in early April. The Company expects to recognise a gain in connection with the sale of between $10 million and $15 million, after-tax and non-controlling interest, or $0.01 per share,” Alcoa said in a press release.
“Alcoa of Australia expects the net cash impact of the transaction, after estimated fees and taxes, will be approximately US$115 million.”
Alcoa of Australia is owned 60% by Alcoa Inc., and 40% by Alumina Limited.
DBP is currently owned 20% by Alcoa of Australia and 80% by DUET.