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authorized and issued 1,088,999 class A shares and 3,500,000
class B shares.
In connection with the organization of RMECC, Metals made a
contribution to RMECC's capital of its 31-percent interest in
CBA, represented by 271,329 class A shares and 1,162,000 class B
Shares of CBA. At the time of transfer, the shares, which Metals
had acquired in 1966, had a total value on the books of Metals of
$32,975,000. Metals also intended that RMECC would acquire, and
then hold, the stock of CBA held by BA and TCH.
Metals and RMECC together negotiated the CBA stock
acquisition from BA. Initially, it had been contemplated that
RMECC would either acquire the shares directly, or that Metals
would acquire the shares and make a capital contribution of the
shares to RMECC.
On August 15, 1968, RMECC purchased from BA its 47-percent
interest in CBA, including 56,400 class A shares and 2,100,000
class B shares, for the Canadian dollar equivalent of
US$39,194,618 (C$42,049,800 x 0.9321). In consideration of the
sale of its CBA stock to RMECC, Metals agreed to several
considerations in favor of BA, including to procure the full and
prompt performance of RMECC, to aid BA in procuring CBA to enter
into termination contracts with BA, and to acquire the rights and
assume all the obligations of BA with respect to its long-term
contracts with CBA for exchanging alumina for aluminum and for
the purchase of aluminum.
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Last modified: May 25, 2011