By Rogerio Jelmayer
SAO PAULO--Brazilian mining giant Vale SA (VALE) on Thursday
announced the sale of a 36.4% stake in its unit called Minerações
Brasileiras Reunidas, or MBR, to an investment fund for 4 billion
Brazilian reais ($1.19 billion).
The stake will be acquired by a fund called Participações
Multisetorial Plus II, which is controlled by Brazil's giant bank
Banco Bradesco SA (BBD).
"This transaction reinforces Vale's commitment to preserve its
financial strength, especially in this moment as it completes the
largest investment program in its history," Vale said in a
statement.
MBR is a subsidiary of which Vale holds 98.3% of the total
capital. MBR owns assets for production, transportation and port
shipment of iron ore, in mines in industrial plants of Vargem
Grande, Abóboras, Pico, Mutuca, Mar Azul and Jangada, which
accounted for the production of approximately 65 million metric
tons of iron ore in 2014.
"These MBR assets are operationally integrated into Vale's
production, transportation and port shipment system known as
southern system and are leased to Vale until the year of 2037,"
Vale said.
After the sale, Vale will hold a stake of 61.9% of the total MBR
capital.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires