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Vale S.A. — Capital/Financing Update 2013
Mar 14, 2013
30050_iss_2013-03-14_3082273c-d279-4517-8255-ac615d06dd32.pdf
Capital/Financing Update
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VALE
Press Release
Vale exercises right of first refusal
Rio de Janeiro, March 14, 2013 – Vale S.A. (Vale) informs that pursuant to the preemptive rights provided in the articles of incorporation of the Capim Branco consortium, it has exercised its right of first refusal and completed the acquisition of a 12.47% stake in Capim Branco I and II hydroelectric power plants from Suzano Papel e Celulose S.A. for R$ 223,030,470.52. As a consequence, Vale's stake will reach 60.89% of Capim Branco I and II, which can generate 1,524 giga watts hours of energy per year by the end of the concession in 2036.
The conclusion of this transaction is subject to the fulfillment of customary regulatory conditions, including approvals of Brazilian government regulatory agencies.
The acquisition of an additional stake in Capim Branco I and II hydropower plants is value accretive as it produces immediate reduction of the cost of energy of our operations, being an investment with a rate of return far above our cost of capital.
For further information, please contact: +55-21-3814-4540 Roberto Castello Branco: [email protected] Viktor Moszkowicz: [email protected] Carla Albano Miller: [email protected] Andrea Gutman: [email protected] Christian Perlingiere: [email protected] Marcelo Bonança Correa: [email protected] Marcio Loures Penna: [email protected] Samantha Pons: [email protected]
This press release may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under "Forward-Looking Statements" and "Risk Factors" in Vale's annual report on Form 20-F.