VALE - A Potential JV Partner?A Batista is on our board of directors. As you all know the Batista family has majority ownership of Vale. Can you imagine what this will do to PCY's shares if PCY is able to JV with Vale.
Brazil miner Vale's Hong Kong shares to start trading as it chases Asian growth
HONG KONG (AP) -- Brazil's Vale mining company, the world's biggestproducer of iron ore, says that a secondary listing of its shares willstart trading on the Hong Kong stock exchange on Wednesday as it seeksgreater access to investors in China's booming economy.
Vale SA said Sunday the shares will be in the form of two classes of Hong Kong Depositary Receipts.
Theywill be the first Hong Kong Depositary Receipts to trade on the city'sstock exchange since the framework was set up more than two years ago.
Valeofficials said the company will not actually be raising any money byselling new shares. Each depositary receipt will instead represent oneVale share traded in Sao Paulo, Brazil, where Vale's primary listing is.
Companyexecutives said they hope to attract more investors from Asia,especially China, which was its biggest source of revenue in 2009 at 37percent.
"Our commitment to Asia is for the long term so I'm notworried whether it (the Hong Kong Depositary Receipts) will besuccessful six months from now," said Chief Financial Officer GuilhermeCavalcanti.
Vale is counting on growth from China and otherdeveloping Asian countries to make up for slowing growth from developedWestern countries, Cavalcanti said.
China has been investing inlarge infrastructure projects such as roads, airports, railways,factories, bridges and housing, which all require vast amounts of steel.
Steel's main ingredient is iron ore.
China'sneighbors such as India are also investing in infrastructure projects,which will also help demand outpace supply for the minerals it produces,Cavalcanti said.
Hong Kong's stock market is trying to diversify its business as it faces increasing competition from its rivals in China.
Allowingoverseas companies to list their shares in Hong Kong through depositaryreceipts is part of the stock exchange's strategic plan to diversifythe types of companies traded.
Vale studied other Asian marketsbut chose Hong Kong because the market is large, has many individualinvestors and draws investors from China and other Asian countries, saidRoberto Castello Branco, the company's director of investor relations.
https://finance.yahoo.com/news/Brazils-Vale-says-HK-shares-apf-2684880462.html?x=0&sec=topStories&pos=3&asset=&ccode