Pension fund Previ not likely to sell its Vale shares in 2018 – source
SAO PAULO – Brazilian pension fund Previ is not likely to sell its shares in Vale in a public offering this year, a person with knowledge of the matter said on Wednesday, a week after the iron-ore miner announced a more generous dividend policy.
Holding on to its full Vale stake would allow Previ to take advantage of Vale's growing dividends as earnings are seen improving, the source said, requesting anonymity to discuss the matter freely.
On March 29, Vale approved a dividend policy that will pay shareholders 30% of adjusted earnings before interest, tax, depreciation and amortisation.
In a note to clients, Credit Suisse said Vale's new dividend policy sets the company as one of the highest yields in the global commodities space.
Previ declined to comment on the matter.
Previ's decision does not mean other major Vale shareholders will not sell part of their stakes, the source added.
Pension funds Previ, Petros, Funcef and Fundação Cesp have discussed the sale of 10% of 12.5% of their Vale stakes in recent months in a transaction that could be worth up to $2.4-billion if BNDESPar, the investment arm of state development BNDES, joins the offering.
The funds manage pensions for the employees of state-controlled Banco do Brasil, Petróleo Brasileiro, Caixa Econômica Federal and Cia Energética de São Paulo, respectively.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation