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Bradespar to distribute about $1bn in Vale stock to shareholders

16th September 2021

By: Reuters

  

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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%

Edited by Reuters

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