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Vale sells Norsk Hydro holding for $1.8B

  • Vale (VALE) has sold a 19.6% holding in Norwegian aluminum-maker Norsk Hydro (NHYDY) for 10.18B Norwegian kroner ($1.66B).
  • Vale sold 407.1M shares in Hydro for 25 Norwegian kroners each; if a greenshoe option for 40.7M shares is exercised, Vale will have sold its entire 21.6% interest for 11.18B kroners ($1.82B), or little more than half the $3.53B value of the stake when the Brazilian mining company acquired it in 2011.
  • The divestment is part of Vale's strategy of selling non-core assets, putting projects on hold, and focusing on its more profitable iron-ore operations.
  • Prior to the deal yesterday, equity analyst Alan Glezer said he viewed the "likely transaction as positive, as it strengthens Vale's balance sheet, helping to alleviate part of the leverage pressure during an intense period of investment." (PR)
Comments (1)
  • EuricoIFConsultant
    , contributor
    Comments (36) | Send Message
     
    The question is if this sale was to strength the balance sheet and focus on core business or just raise funds to pay taxes to the government.
    Let s see...
    12 Nov 2013, 04:59 AM Reply Like
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