After the leak, Vale (VALE3) announces dividend and JCP of 2.33 reais per share; approves the buyback program

* The article has been updated with the closing of the activities in the session

Vale (VALE3) announced at the close of trading this Thursday (26) that its Board of Directors has approved a distribution of profits to shareholders in addition to a new common share repurchase program.

The company’s announcement was made late in the evening, while the market was still open, after Broadcast said, citing sources, that the company would pay out about $2 billion in extraordinary dividends, prompting a trading halt in the stock. VALE3 assets returned to trading at the end of the session and closed up 2.14% at 65.30 reais.

The distribution of profit to shareholders includes a gross amount of R$2.331661567 per share, with R$1.565890809 per share as dividends and R$0.765770758 per share as interest on equity. The total cost is about 10.58 billion reais.

The reward will be paid on December 1, 2023.

The closing date for holders of Vale shares traded on B3 is November 21, 2023, and the record date for holders of American Depositary Receipts (“ADRs”) traded on the New York Stock Exchange (“NYSE”), with is November 24, 2023.

Therefore, Vale shares will trade ex-dividend on the B3 and NYSE from November 22, 2023.

The mining company also said that the value of earnings per share may change slightly until the shutdown date as a result of the share buyback program, which affects the number of treasury shares. In this case, he stressed, he will issue a new message to shareholders with information on the final value of each asset.

New share buyback program

The company also announced a new share repurchase program to purchase up to 150 million shares of common stock and related ADRs, representing approximately 3.5% of the outstanding shares, depending on the current stockholder.

The term of the new program is 18 months, commencing with the expiration of the current program, which will occur on October 27, 2023 at the end of the term and with the accumulated acquisition of 360,324,179 shares, which will be subject to future cancellation.

The company reports its results for the third quarter of 2023 this Thursday, after the market closes.

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