OREANDA-NEWS. July 18, 2011. Vale S.A. (Vale) announces that it has filed with Comissao de Valores Mobiliarios (CVM) the Prospect (Edital) and a request for registration of a public offer to acquire up to 100% of the free float shares of its subsidiary Vale Fertilizantes S.A. (Vale Fertilizantes), in order to subsequently cancel the public company registration, as previously disclosed.

The public offer to acquire shares involves a cash price of BRL  25.00 per share, for both the common and preferred shares, amounting to a total disbursement by Vale of up to BRL  2.22 billion (equivalent to USD  1.41 billion at the BRL/USD exchange rate of 1.5729 for July 14, 2011). The price of BRL  25.00 per share implies a 41% premium over the average price of preferred shares traded in the last 20 trading days on the BM&FBovespa as of June 22, 2011, the date in which the proposal was announced to the market.

“The OPA will be made in Brazil only, and information concerning the offer may not be delivered outside Brazil.  Shares tendered pursuant to the OPA must be delivered in Brazil and consideration for these shares will be paid in Brazil.  Vale makes no representation as to compliance with any non-Brazilian law, rule or regulation”.