- Title: Vale should attract fresh investors with share swap plan
- Date: 8th August 2017
- Summary: RIO DE JANEIRO, BRAZIL (AUGUST 7, 2017) (REUTERS) VALE CHIEF FINANCIAL OFFICER, LUCIANO SIANI, SITTING DOWN FOR INTERVIEW CLOSE-UP OF SIANI SIANI SMILING WHILE SITTING AT TABLE BEFORE INTERVIEW VALE SIGN ON EXTERIOR OF BUILDING (SOUNDBITE) (English) VALE CHIEF FINANCIAL OFFICER, LUCIANO SIANI, SAYING: "In talking about the benefits of the share conversion, this will enable Vale to have a world-class governance like you have in the most developed markets in the world. So the current controlling shareholders, they are surrendering, relinquishing control, in favor of a shared ownership of the shares which means the board will now become independent, there will be first a few independents and then within three years a fully independent board so we expect improved quality of decision-making, better stewardship, more depth of experience at the board, and also by concentrating the share classes into one single share of class, you will have improved liquidity and hopefully the shares will trade also at a premium as you can observe in markets where you have companies with such standards of governance." LUCIANO'S HANDS ON TABLE LUCIANO DURING INTERVIEW (SOUNDBITE) (English) VALE CHIEF FINANCIAL OFFICER, LUCIANO SIANI, SAYING: "When you think about base metals, we are leaders in the nickel market. There's a lot of talk about the potential increase in nickel demand because of the electric vehicles but we're not awaiting for this future, we're starting to act right now. We are undergoing a complete comprehensive review of our asset base and trying to see where are the opportunities of - what are the better assets where perhaps management needs to change. So there we need to do a more in depth analysis in order to improve performance because nickel prices today are very very low and we don't want to wait for the bonanza of the electric vehicle market to be profitable." VALE SIGN ON EXTERIOR OF BUILDING
- Embargoed: 22nd August 2017 18:22
- Keywords: share swap plan Asian investors Luciano Siani
- Location: RIO DE JANEIRO, BRAZIL
- City: RIO DE JANEIRO, BRAZIL
- Country: Brazil
- Topics: Government/Politics
- Reuters ID: LVA0016TARRYB
- Aspect Ratio: 16:9
- Story Text: Vale's share swap plan should help attract more Asian investors and specialized mining and metals funds, the company's Chief Financial Officer told Reuters on Monday (August 7), adding that the world's top iron ore producer was on track to meet its debt target this year.
The share conversion plan, approved by shareholders in June, will be key to raising awareness among global investors of the benefits of a more transparent Vale, Luciano Siani said in an interview at the Reuters Latin American Investment Summit.
"The process is directed towards our current shareholders, but the intention is that the improvement in governance will allow us to grow our investor base," Siani said, flagging Asian investors and dedicated mining and metals funds.
The plan, which would convert preferred shares into a single, common stock, is aimed at boosting transparency and limiting government meddling in the company.
Siani also said that the company would meet its $15 to $17 billion net debt target this year and should continue cutting debt, noting that it would help the company pay out more in dividends.
Vale cut net debt to $22.12 billion, after amassing hefty debt due to low iron ore prices and sizeable outlays to build its S11D mine, which was unveiled in December.
A detailed analysis of the company's business plan, which was commissioned by Chief Executive Officer Fabio Schvartsman, will be released in conjunction with the company's annual "Vale Day" event in New York, Siani added.
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