Brazilian miner Vale agrees to divest VLI stake to Brookfield for $842M
Brazilian iron ore miner Vale said it had agreed to divest a 26.5% stake in logistics firm VLI SA. The said shares are to be sold to Canada's Brookfield Asset Management in a deal valued at BRL2 billion ($842.78 million), according to Reuters.
The transaction is subject to approval from Brazil's regulatory authorities. In a securities filing, Vale said it would hold a 37.6% stake in the rail and port-cargo division after the sale, the report detailed.
In September, Vale had announced its plans to exit VLI shares to Brookfield, Japanese trading firm Mitsui Co, and Brazilian compensation and retirement fund FGTS. The said transaction is expected to amount to around BRL4 billion, the report stated.
The share sale will release Vale from some of the burden of holding non-core freight operations, which the government had moved the firm to assume recently. According to Vale, the sale is a strategic move to divest its non-core assets, Reuters reported.