Cia. Vale do Rio Doce and the Previ pension fund plan to sell shares representing 15 percent of the voting capital in Usinas Siderugicas de Minas Gerais SA, Brazil's second-largest steelmaker.
The two companies will sell 16.4 million shares in a public offering worth as much as 1.87 billion reais ($922 million), based on yesterday's closing price of 113.90 reais each. The sale price will be set April 26, Usiminas said in a statement in Valor Economico newspaper today.
Vale, which was Usimina's largest shareholder but had no say in the controlling shareholder group led by Japan's Nippon Steel Co., agreed to cut its stake in exchange for the right to appoint a member of the company's board. After the transaction, Vale's stake will be trimmed to about 6 percent from 23 percent.
Previ and Bradespar SA (BRAP3), the industrial holding company of Banco Bradesco SA, control Vale.
Vale, the world's largest iron-ore and nickel producer, is selling 12 million shares in Usiminas. Previ, Latin America's largest investment fund, is selling 4.4 million shares, according to the statement. Merrill Lynch & Co. is managing the sale.
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