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Cosan not aiming to sell Vale stake in short term, chairman says

Brazilian corporation Cosan is not aiming to sell its stake in miner Vale in the short term, Chairman Rubens Ometto was priced estimate as saying in an interview published on Wednesday.

WHY IT is necessary

Cosan is a Brazilian product giant and owns a stake of just over 4% in Vale, making it an important shareholder in one of the world's largest iron ore miners, which has a dispersed ownership.

A Bloomberg News report last month indicated Cosan was considering a sale of properties including its $2.2 billion stake in Vale.

KEY PRICES ESTIMATE

We are long-lasting financiers and enjoy (with it). We are not thinking about flipping the shares in the short term, Ometto said in an interview with newspaper Valor Economico.

He kept in mind, nevertheless, that Cosan was studying alternatives to reduce its financial obligation load.

EXTRA BACKGROUND

Cosan controls logistics firm Rumo, lubricants company Moove, natural gas firm Compass and shares control of Raizen with Shell.

It initially acquired a 4.9% stake in Vale in late 2022 however has because sold some 33 million shares, lowering the stake to 4.1% in a relocation it stated was targeted at optimizing its capital structure, without any modification to its long-term Vale financial investment.

Vale just recently switched CEOs, with previous finance head Gustavo Pimenta changing Eduardo Bartolomeo. Ometto applauded Pimenta as someone who knows the miner well and would fix what requirements to be done, according to Valor.

(source: Reuters)