Vancouver – Seeing little strategic value in holding on to its stake in iron ore producer Companhia Vale do Rio Doce (CVRD), BHP Billiton (BHP-N) has agreed to sell its 2.1% indirect interest to Brazilian steelmaker Companhia Siderurgica Nacional.
The major intends to unload the interest through its 67% interest in Sweet River Investments (Sweet River has a 11.6% interest in a company that holds a 27% shareholder in CVRD, and it intends to sell this 11.6% interest). The sale involves exercising a put option, which expires in 2004. The price tag comes in at US$343 million.
London-listed Billiton acquired the interest, which will be sold through early exercise of an option, prior to its merger with BHP.
“BHP Billiton believes there is little to be gained from holding the option to the end of its life,” says W.N. Brumer, chairman of BHP Billiton Metals.
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