Rio Tinto Sells Down Stake in Constellium

SYDNEY--Rio Tinto PLC (RIO) has sold down its stake in aluminum products company Constellium NV (CSTM) for nearly US$330 million, the latest in a string of sales as the mining giant looks to bolster its balance sheet amid a slowdown in resources demand.

The Anglo-Australian mining company sold more than 19.3 million shares last week at a price around US$17 each, according to a filing with the U.S. Securities and Exchange Commission.

As a result, Rio Tinto's stake in the Amsterdam-based company has fallen from 28% to 9.2%, according to the filing. That means the miner retains 9.6 million shares.

London-based Rio Tinto has been slashing costs and spending to cut debt that swelled to almost US$19 billion last year, as it looks to protect its single-A credit rating.

In July, the miner agreed to sell its majority stake in Australian copper-and-gold mine Northparkes to China Molybdenum Co. for US$820 million. Last month, it signed a deal to sell its Clermont thermal-coal mine in Australia's Queensland state to Glencore Xstrata PLC (GLEN.LN) and Sumitomo Corp. (8053.TO) in a deal worth US$1.02 billion.

Constellium, which serves the aerospace, packaging and automotive markets, was formed after Rio Tinto spun out assets purchased as part of its US$38 billion acquisition of Canadian aluminum giant Alcan in 2007. In 2011, it sold a controlling stake in what would become Constellium to Apollo Global Management LLC (APO).

For the year ended Dec. 31, Constellium swung to a profit of EUR134 million (US$181 million).

Constellium listed on the New York Stock Exchange and NYSE Euronext Paris in an initial public offering in May which valued the aluminum business at around US$333 million. Constellium's stock fell 0.8% to US$19.99 a share Monday.

Write to Rhiannon Hoyle at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires