OREANDA-NEWS. Vale has acquired an additional 12.47% stake in Capim Branco I and II hydroelectric plants, in Minas Gerais, from Suzano Papel e Celulose SA, thereby increasing its total stake to 60.89%. As a result of this increased interest, Vale will be able to generate 1,524 gigawatt hours of energy per year by the end of the concession of the plants in 2036.

The acquisition of an additional stake is value accretive as it produces immediate reduction of the company’s energy costs of its operations, being an investment with a rate of return far above Vale’s cost of capital.

The conclusion of the transaction is subject to the fulfillment of customary regulatory conditions, including approvals of Brazilian government regulatory agencies. The additional stake was acquired for RUSD 223,030,470.52, through the exercise of pre-emptive rights provided for in the articles of incorporation of the Capim Branco consortium.