trending Market Intelligence /marketintelligence/en/news-insights/trending/fse9lkw9ohjc48ixmw3etw2 content esgSubNav
In This List

Brazilian pension funds still interested in selling stakes in Vale


Japan M&A By the Numbers: Q4 2023


Infographic: The Big Picture 2024 – Energy Transition Outlook

Case Study

An Oil and Gas Company's Roadmap for Strategic Insights in a Quickly Evolving Regulatory Landscape


Essential IR Insights Newsletter Fall - 2023

Brazilian pension funds still interested in selling stakes in Vale

Brazilian pension fund Funcef is still mulling over the possible sale of its stake in Vale SA but is in no immediate hurry to do so, Reuters reported June 12, citing Paulo Werneck, a director at Funcef.

Meanwhile, a same-day Reuters report said pension fund Petros CEO Walter Mendes said it expects to sell part of its stake in the mining major this year but it does not want to rush the process.

Pension funds Previ and Funcef, which are controlling shareholders in the Brazilian miner, have been considering off-loading between 10% and 12.5% of their shareholding this year.

According to the report, controlling shareholders — including Previ, Funcef, Bradespar SA and Mitsui & Co. Ltd. — are permitted to gradually sell its stake in Vale, following the miner's move to unify its shares into a single stock class in late 2017.

Werneck said in the newswire's report that Funcef will also consider which stocks pay higher dividends when choosing stocks from its portfolio it should sell.

Previously, Vale CEO Fabio Schvartsman said to expect "at least" US$1 billion in quarterly dividends, following the miner's distribution of US$1.4 billion in dividends in the first quarter of the year as part of the company's policy to pay out 30% of its adjusted EBITDA less sustaining CapEx.

Schvartsman said in a Bloomberg News report in May that Vale is set to achieve its US$10 billion debt target later in the year, following which the mining major will focus on giving out more cash to shareholders.