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Vale Announces Public Offer of Equity
06/11/2008 - Companhia Vale do Rio Doce announces a proposed public offering of common shares and preferred class A shares, with a maximum value of US$ 15 billion, subject to approval of its Board and the Brazilian regulator.
Companhia Vale do Rio Doce (Vale) announced that its senior management approved (on May 26, 2008) a proposed public offering of common shares and preferred class A shares, with a maximum value of US$ 15 billion, including the offering and any exercise of the underwriters’ over-allotment option.
Senior management was to submit the proposal to the company’s Board of Directors, who must approve the offering before it can be implemented. The offer is also subject to the approval of the Brazilian regulator, Comissão de Valores Mobiliários – CVM, and to conditions prevailing in global capital markets.
Vale said that if and when the offering is confirmed, it will disclose information concerning its characteristics. The company also said it would use net proceeds of the offer, if it is completed, for general corporate purposes. Those purposes include the financing of Vale’s organic growth program based on an investment plan of US$ 59 billion, as well as strategic acquisitions and building increased financial flexibility.
Vale reports that it is not currently negotiating any strategic acquisition.
The company also noted that this announcement does not constitute an offer of any securities for sale.
