Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
RIO DE JANEIRO, Oct 18 (Reuters) – Shareholders of Brazil’s Vale SA elected Sandra Guerra and Isabella Saboya as new independent board members in a meeting on Wednesday, according to the company’s press office.
Guerra and Saboya, two of four competing candidates for the board, were nominated by Aberdeen Asset Management, acting on behalf of investment funds it manages for clients that are Vale shareholders.
Guerra is co-founder of the Brazilian Institute of Corporate Governance, and Saboya has been a sell-side analyst and asset manager executive and has also worked for the Brazilian securities industry watchdog.
Shareholders owning common stock also approved a mandatory plan to convert preferred shares into common shares at the ratio of one preferred share to 0.9342 common share.
Preferred shareholders will vote on the plan in a special meeting for their class of stock later on Wednesday, the company said.
Vale finalized the first phase of its plan to become a company with a single stock class on Aug. 14, when shareholders owning 84.4 percent of preferred shares joined the plan, topping a minimum 54.09 percent threshold.
Merging Vale’s different classes of stock into a single, common one may attract new Asian investors and specialized mining and metal investment firms, Chief Financial Officer Luciano Siani told Reuters in August.
(Reporting by Marta Nogueira; Additional reporting and writing by Tatiana Bautzer in Sao Paulo; Editing by Steve Orlofsky).
