Vale Boosts Offering Size To Sell Norsk Hydro Shares

(RTTNews) - Brazilian mining giant Vale S.A. (VALE) raised Monday the size of the offering to sell shares in Norwegian aluminum producer Norsk Hydro ASA (NHYDY, NHYKF, NHY) to 407.1 million Hydro shares from the original decision earlier in the day to sell 224 million shares. The Norsk Hydro shares, currently valued at about $1.8 billion, is held by Vale's wholly-owned subsidiary.

Vale noted that it will also make available up to 40.7 million additional shares, pursuant to an over-allotment option. Norsk Hydro is a company listed on the Oslo Stock Exchange and the London Stock Exchange.

The sale of stake in Norsk Hydro is in line with Vale's strategy of trimming its investment in non-core assets in order to focus on its main business. The company is now focusing on capital allocation discipline and value maximization for shareholders.

Further, Vale has agreed to a 180-day lock in period to dispose of any further Norsk Hydro shares following the completion of the offering, subject to certain customary exceptions.

The company noted that the pricing for the offering and the final number of shares sold will be determined on completion of the bookbuilding for the offering.

The completion of the offering will see Vale reduce its stake in Norsk Hydro to as little as 2.0 percent from 21.64 percent. However, Vale will no longer hold any further shares in Hydro's share capital and voting rights, if the over-allotment option is exercised in full.

Rio de Janeiro, Brazil-based Vale, the world's largest iron-ore producer, had acquired the near 22 percent stake in Norsk Hydro in early 2011 in exchange for some of its Brazilian bauxite-mining and aluminum assets.

VALE closed Monday's regular trading session at $15.96, down $0.02 or 0.13% on a volume of 14.48 million shares