Trade Resources Industry Views Brazilian Mining Group Vale Has Reduced Its Stake in Norsk Hydro to 2%

Brazilian Mining Group Vale Has Reduced Its Stake in Norsk Hydro to 2%

Brazilian mining group Vale has reduced its stake in Norwegian aluminum producer Norsk Hydro to 2% from 21.6% and may completely offload its holding in the company, Hydro said Tuesday.

Vale announced on Monday an offering to sell shares in Norsk Hydro through a wholly owned subsidiary, and through a book-building process Vale sold 407,122,241 shares in Hydro, the company said.

"After the completion of the transaction, assuming no exercise of the over-allotment option, Vale has reduced its shareholding, through its wholly owned subsidiary, from 447,834,465 shares to 40,712,224 shares, thereby reducing its ownership share in Hydro from 21.6% to 2.0% of the shares authorized and issued," Hydro said in a statement.

If the over-allotment option is exercised in full, Vale will not hold any shares in Hydro, it added.

The shares sold from Vale have been purchased by "several investors," Hydro said.

The offering of Hydro shares "is consistent with Vale's strategy of reducing its exposure to non-core assets, and a result of its focus on discipline in capital allocation and value maximization for shareholders," Vale said in a statement.

The Brazilian group took up its stake in Hydro in early 2011 as part of a transaction by which Hydro acquired Vale's aluminum business.

Under the terms of the deal, Vale agreed not to increase its ownership in Hydro beyond 22%; to retain its shares in Hydro for at least two years after the transaction closed; and following the two-year period, not to sell shares constituting more than 10% of Hydro's issued shares to any single buyer or group.

Source: http://news.chemnet.com/Chemical-News/detail-2188761.html
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Brazilian Miner Vale Divests From Norwegian Aluminum Producer Hydro
Topics: Metallurgy