Kaiser Aluminum agrees to sell Valco interest to Ghana

New York, Dec. 19 - Kaiser Aluminum said it signed a memorandum of understanding to sell its 90% interest in Volta Aluminum Co. (Valco) to the Republic of Ghana for between $35 and $100 million.

The Republic will also assume related liabilities and obligations.

Kaiser will receive payment in 2004 and subsequently. After the initial $35 million, Ghana will pay $7 million cash to Kaiser in 2004 and $18 million in cash to Valco, reducing Kaiser's funding to Valco.

The rest of the purchase price - a minimum of $10 million - will be paid in cash to Kaiser over five years.

The transaction is expected to close by April 30.

Kaiser, a Houston producer of aluminum products, alumina and aluminum, said the transaction is subject to due diligence and approvals, including by the President or Cabinet of Ghana, the Parliament of Ghana, the boards of directors of Kaiser and of Valco, the U.S. Bankruptcy Court and the lenders under Kaiser's post-petition credit agreement.

The purchase is also subject to Alcoa's right of first refusal under Valco's corporate governance requirements.

Once Ghana pays $7 million into escrow, pending international arbitration will be suspended. On closing of the sale, the parties will dismiss the arbitration with prejudice.

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