Brazilian iron ore producer and miner Vale will soon change its current shareholding structure to one that will prevent a single major shareholder from maintaining control over the company.
Vale’s new shareholding structure will come into effect on November 9 this year, and it will aim to prevent any shareholder from owning over 25 percent of the miner’s capital. And if any shareholder does, it will be obliged to sell the exceeding stock through a stock offering.
Today, a small group of large institutional investors own the control of Vale. Those include Litela, Bradespar, Mitsui and Co and BNDESPar, the investing arm of Brazilian development bank, BNDES.
A media report by Valor noted the end of Vale’s current shareholding structure will allow shareholding changes that have been prepared for about three years.