NEW YORK (TheStreet) -- Shares of Noranda Aluminum (NOR) were falling 25.8% to $2.23 Tuesday after the announcement that Apollo Global Management (APO) will sell its stake of 22.84 million shares of the aluminum producer in a secondary public offering.
Following the offering Apollo Global will no longer hold any shares of Noranda Aluminum. Apollo Management held about 33.1% of the aluminum producer prior to the offering.
Noranda Aluminum said it expects Matthew R. Michelini, Matthew H. Nord, Eric L. Press, and Robert J. Kalsow-Ramos, who are affiliates of Apollo Global, to resign from the company's board of directors following the offering.
The offering is expected to close on or about May 15, 2015, and Noranda Aluminum will receive no proceeds from the offering.
About 3.8 million shares of Noranda Aluminum were traded by 9:46 a.m. Tuesday, above the average trading volume of about 355,000 shares a day.
TheStreet Ratings team rates NORANDA ALUMINUM HOLDING CP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORANDA ALUMINUM HOLDING CP (NOR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and poor profit margins."