Vale informs on sale of minority interest
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Vale informs on sale of minority interest
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Vale informs that it has entered into an agreement to sell the totality of its 25% stake in the Chinese company Henan Longyu Energy Resources to the Yongmei Group, for CNY 1.065 billion, which is equivalent to US$ 152 million, approximately.
Longyu operates two coal mines in the province of Henan, producing about 3.4Mtpy of metallurgical and thermal coal. The company is controlled by Yongmei, which is a subsidiary of Henan Energy and Chemical Industry Group.
The closing of the deal is expected for the first quarter of 2020, upon completion of conditions precedent to the transfer of the stake.
The transaction is in line with Vale's strategy of discipline in capital allocation and business portfolio rationalization.
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