NEW YORK (TheStreet) -- Shares of Alcoa (AA) - Get Report are slipping 2.9% to $9.06 late Wednesday morning as the metals company gave more details on its planned split, which will consist of a spin off of its traditional upstream smelting business.
Additionally, up to 19.9% of the new company will be owned by its value-added business that serves the aerospace and automotive sectors, Reuters reports.
The company that will be spun off will be named Alcoa Corp. and the value-added business will be called Arconic Inc., according to a regulatory filing.
The split comes as aluminum prices are near historic lows.
Many producers have claimed China is selling metals into oversupplied global markets below market rates, Reuters noted. China has denied the accusations and said excess capacity is a global problem.
During the downturn, Alcoa has been lowering its refining and smelting capacity and has focused on more advanced aerospace and automotive products, Reuters added.
"This is one of the most complicated transactions I've come across in ages," Cramer said.
"I like everything I hear," Cramer added, but there are some questions about the specifics. "It's still too sketchy about where the debt will reside."
The separation is on track to be completed in the second half of the year, according to the company.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that were evaluated.
But the team also finds weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AA