Shares of Century Aluminum Co. (NASDAQ:CENX) fell 11% on Tuesday after reports surfaced that Glencore Plc plans to sell a substantial portion of its holdings in the U.S.-based aluminum producer through an overnight block trade.
According to Bloomberg, Glencore is aiming to raise as much as $284.9 million by selling 9 million Century Aluminum shares. The shares are being offered in a price range of $30.65 to $31.65 each, marking a discount of up to 5.1% from Monday’s closing price of $32.31.
The transaction, which is reportedly unregistered, is being arranged by Morgan Stanley, sources familiar with the deal told Bloomberg. These individuals, who requested anonymity due to the private nature of the discussions, confirmed that the sale process began late Monday.
The move signals a potential strategic shift by Glencore, which has been one of Century Aluminum’s largest shareholders for years. If completed, the sale would significantly reduce Glencore’s ownership in the company.
Century Aluminum’s stock came under heavy selling pressure as investors weighed the impact of the possible divestment. Trading volumes surged well above average levels on Tuesday as traders reacted to the prospect of a large shareholder exit.
Century Aluminum operates primary aluminum smelters and related facilities in the United States and Iceland. The company’s shares have gained more than 40% year-to-date amid higher aluminum prices, making the timing of Glencore’s potential sale particularly notable.