Vale to pay out $2 billion to shareholders, launch buyback program

Brazilian miner Vale will shell out $2 billion to its shareholders, it said on Thursday, and launch a share buyback program for up to 150 million shares.

The company will pay 2.33 reais per common share in dividends and interest on capital on Dec. 1, it said in a securities filing.

The share buyback program – which accounts for 3.5% of its total outstanding shares – will take place over 18 months starting Friday.

During its previous buyback, which ends on Thursday, Vale acquired around 360 million shares which will be canceled, it said.

Shares in Vale rose 1.9% near the closing bell on Thursday, while the broader Bovespa index grew 1.6%.

($1 = 4.9922 reais)

(By Peter Frontini; Editing by Kylie Madry)