Vale Proposes Second Tranche Dividend Payment Of $2.25 Bln For 2013

(RTTNews) - Brazilian mining giant Vale S.A. (VALE) announced Wednesday that its executive board has approved the payment of the second tranche of the total 2013 dividend that was announced in late January 2013. The company noted that the proposal will now be submitted to the board of directors for final approval to go ahead with payment of the $2.25 billion dividend.

The Rio de Janeiro, Brazil-based world's largest iron-ore producer had in January approved a proposal for a minimum dividend of $4.0 billion in 2013. The dividend equaling $0.78 per share for both common and preferred shares outstanding was to be made in Brazilian reais.

The company said in January that it will pay the dividend in two equal tranches on April 30 and October 31. Meanwhile, each tranche of dividend payment was to be evaluated and approved by the board of directors in meetings scheduled for April 16 and October 17, 2013.

While proposing the 2013 dividend payment, the company said, "The proposed minimum dividend is consistent with Vale's financial policy, which aims to provide a strong support to the exploitation of profitable growth opportunities alongside the preservation of a sound balance sheet simultaneously with the focus on discipline in capital allocation."

The executive board has currently proposed the payment of a minimum dividend of $1.75 billion and an additional dividend of $500 million. This equates to a second tranche dividend payment of $2.25 billion or $0.44 per common or preferred share in circulation as of August 31, 2013.

The proposal will be submitted for approval to the Board of Directors on October 17, and will be paid in Brazilian reais on October 31 following the approval.

The record date for the owners of shares traded on the BM&FBovespa is October 17. Meanwhile, the record date for the holders of ADRs traded on the NYSE and Euronext Paris as well as HDRs traded on the Hong Kong Stock Exchange is October 22, 2013.

The first tranche of $2.25 billion or $0.44 per outstanding common or preferred share, was proposed on April 1 and was paid on April 30 following approval from the board of directors. This equated to a payment of R$4.45 billion of R$0.86 per outstanding common or preferred share.

Following the approval and payment of the second tranche, the miner will have distributed to its shareholders a total dividend payment of $4.5 billion in 2013, including the first tranche dividend payment of $2.25 billion.

In 2012, Vale had paid a total dividend of $6.0 billion or $1.18 per share for both common and preferred shares outstanding, and distributed in two tranches on April 30 and October 31, 2012.

VALE closed Wednesday's regular trading session at $15.73, up $0.17 or 1.09% on a volume of 14.38 million shares.