Nov. 14 (Bloomberg) -- Vale SA, the world’s biggest iron ore exporter, completed the sale of all of its 22 percent stake in aluminum-maker Norsk Hydro ASA for $1.82 billion after an over-allotment option was exercised.
Vale sold the additional 40.7 million Hydro shares for 25 kroner ($4.04) each, the Rio de Janeiro-based company said today in a statement. It sold 407.1 million shares for the same price in the Oslo-based company on Nov. 12. Gross cash proceeds from the offering are 11.2 billion kroner, equivalent to about $1.82 billion, Vale said.
The miner is selling assets, putting projects on hold and focusing on its more profitable iron-ore business in a bid to recover profit margins after commodity prices fell. In September, it sold stakes in a cargo unit for about 2.7 billion reais ($1.2 billion) to Japan’s Mitsui & Co. and a Brazilian government fund after $1.47 billion of asset sales last year, including a coal mine in Colombia and 10 large vessels.
DNB Markets and Morgan Stanley were joint global coordinators and book runners for the offering, Vale said. The mining company increased the offer from a total of 224 million shares after an earlier book-building process. Vale is seeking to complete the settlement of the share sale tomorrow.
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