Vale will repurchase up to 200 million shares

The new buyback takes place in light of the imminent conclusion of the current program, which had about 268 million of the 270 million shares (Image: REUTERS/Adriano Machado)

A Vale (VALE3) approved a new repurchase program of 200 million shares, or 4.1% of the shares outstanding in the market, shows a relevant fact sent to the market this Thursday (28).

The new repurchase comes in light of the imminent conclusion of the current program, which has had around 268 million of the 270 million shares repurchased to date.

The duration of the operation will be 18 months.

“The continuity of the buyback program demonstrates the company’s management confidence in Vale’s potential to consistently create and distribute value. Governed by discipline in capital allocation, we consider the repurchase of our shares to be one of the best investments available to the company”, he informed in the document.

Typically, buy-back programs occur when the company determines that the shares are cheap. In the year, the share of Vale accumulates a fall of 19.42%.

Furthermore, with fewer shares outstanding, it is possible that the amounts of dividends distributed per paper to shareholders will increase.

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