Century Aluminum stock tumbles as Glencore reduces shareholding

Century Aluminum Co. (NASDAQ: CENX) shares fell the most in seven months after its biggest shareholder Glencore Plc reduced its stake in the US-based producer of the light-weight metal.

Glencore sold 9 million shares in the Chicago-based aluminum refiner in a block trade that raised $276 million in gross proceeds, according to people familiar with the matter.

The Swiss commodity producer and trader locked in a 77% gain in the shares this year through Monday after US President Donald Trump stepped up efforts to protect local metal supplies from imports. Aluminum prices are up 13% this year.

The block trade priced at $30.65 apiece, the bottom of a marketing range and 5.1% below Monday’s close, said the people, who asked to be identified because the information is private. Century fell as much as 17% on Tuesday, the steepest intra-day decline since April 4 and the worst performance among peers.

Representatives for Century and Morgan Stanley, which worked on the offering, didn’t immediately respond to requests for comment. A Glencore spokesperson declined to comment.

The block represented a 9.6% stake in Century, according to Bloomberg calculations. Prior to the offering, Glencore was Century’s top shareholder with 40.1 million shares, or about 43%.

(By Anthony Hughes and James Attwood)