Brazilian mining giant Companhia Vale do Rio Doce (Vale) announced on Thursday it plans to launch a global offering of up to 256,926,766 common shares and164,402,799 preferred shares on or near July 4.
Considering Vale's stock prices on Wednesday, the offering amount will reach 20.5 billion reais (13 billion U.S. dollars).
The global offering will consist of a registered offering in Brazil and an international offering. Existing shareholders that are residents in Brazil will have priority for the Brazilian offering shares.
Vale said its main shareholder, Valepar, has decided to subscribe the number of common shares required to keep its proportionate interest in the company's common shares following the capital increase. Valepar currently holds 52.29 percent of Vale's common shares, which accounts for 31.89 percent of the company's total capital.
The company said the proceeds of the offering will be used for general corporate purposes, which may include financing its program of organic growth based on its 59 billion dollar investment plan, strategic acquisitions and increased financial flexibility.
Vale also applied to list and trade its common and preferred ADSs (American Depositary Shares) on Euronext Paris. The company's ADSs are now listed on the New York Stock Exchange, and its common and preferred shares are listed on the Sao Paulo Stock Exchange.
Vale announced on June 10 its plan to raise up to 15 billion dollars with the offering, when market hearsay said the company was preparing for new international acquisitions in the aluminum and copper sector. Vale denied the acquisition rumor, but with the offering announcement, the expectation about new acquisitions will remain strong.
Source: Xinhua
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