SAO PAULO - Brazilian holding company Bradespar, one of the largest shareholders in miner Vale SA, said it will distribute 5.2-billion reais ($990-million) in Vale shares to its shareholders, reducing its capital.
In a securities filing late on Tuesday, Bradespar said the proposal will be put to a vote at an October 15 shareholders meeting.
Bradespar owns a 5.73% stake in Vale, worth 27.6-billion reais based on Tuesday's closing prices, analysts at broker XP said in a note to clients. The holding company will reduce its stake to 3.23% after the transaction.
XP analysts said the news is positive to the holding company, reducing its discount relative to Vale shares from 20%