Brazil's Vale shareholders near deal to pay Eletron $692m

By Reuters / September 26, 2018 / www.mining.com / Article Link

SAO PAULO, Sept 26 (Reuters) - Two major shareholders of Brazilian mining company Vale SA are likely to reach an agreement on Wednesday to pay 2.82 billion reais ($692 million) to Eletron to settle a dispute over Vale shares, according to securities filings by Bradespar SA and Litel Participa???ues SA.

The payment by Brazilian holding companies Bradespar, one of the largest shareholders in Vale, and Litel, owned by pension funds, is expected to be formalized on Wednesday in court, according to both companies.

Litel and Bradespar were due to pay roughly 4 billion reais ($981.2 million) judgment awarded by a Rio de Janeiro court in May to fellow shareholder Eletron, a holding company controlled by banker Daniel Dantas.

Each holding company will pay 1.4 billion reais ($343.4 million), according to the securities filings.

The dispute began 10 years ago, tied to an option that El?(C)tron had to acquire Vale shares. El?(C)tron was part of a group that bid in an auction to privatize Vale in 1997.

($1 = 4.05 reais)

(By Carolina Mandl; Editing by Chizu Nomiyama and Jeffrey Benkoe)

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