Aussie Alumina secures CITIC's investment of $468m

SYDNEY -- Shares in Australia's Alumina Limited soared more than 11 percent in early trading on Thursday after the company secured a strategic investment of A$452 million ($468.09 million) from China's state-owned investment firm CITIC.

Alumina announced on Thursday that CITIC will buy more than 366 million new Alumina shares, representing 13.04 percent of Alumina' capital base following completion of the placement.

Alumina said CITIC would be a strategically aligned and financially strong long-term investor to the Alumina share register.

Alumina said proceeds of the share sale will be used to repay its bank debt.

At 11:44 local time on Thursday, Alumina shares were up 11.83 percent at A$1.34, the highest level since March 2012.

According to Alumina, Vice-Chairman and Chief Executive Officer of CITIC Resources Holdings Limited Chen Zeng will be appointed to the Alumina Board.

"CITIC's investment demonstrates their confidence in the alumina industry and their understanding of Alumina Ltd's unique position in the global market," Alumina CEO John Bevan said in a statement.