MITSY - Vale evaluating IPO of metals unit after sale of 10% stake - report
2023-03-15 13:17:47 ET
Vale SA ( NYSE: VALE ) is evaluating a spinoff or initial public offering of its base metals business after it completes a sale of a minority stake.
The Brazilian miner is in discussions to sell a 10% stake in the unit with final offers due in mid-April, according to a Bloomberg report , which cited people familiar. Once the transaction is done, Vale is expected to list the unit or spin it next year.
Vale is said to have approached Mark Cutifani, a former CEO of Anglo America Plc ( OTCQX:AAUKF ) to become chair of the base metals business, according to the report. There's no guarantee that Cutifani will be offered the job or that the company will pursue a spin or IPO.
Vale CEO Eduardo Bartolomeo told the Financial Times in January that Vale ( VALE ) received multiple bids for a stake of as much as 10% in its base metals business following talks with sovereign wealth funds, automakers and industrial groups.
Vale ADRs fell 4.2% in trading on Wednesday.
Media report from Bloomberg and the WSJ last month indicate that General Motors ( GM ), Mitsui & Co. ( OTCPK:MITSY ) and Saudi Arabia's Public Investment Fund were said to be considering offers for the 10% stake.
For further details see:
Vale evaluating IPO of metals unit after sale of 10% stake - report