1/28/2010

Vale acquires Fosfertil shares

Rio de Janeiro, January 28, 2010 – Vale S.A. (Vale) informs that it has entered, through its subsidiary Mineração Naque S.A., into an option contract with Yara Brasil Fertilizantes S.A. (Yara), giving it the right to buy shares of  Fertifos Administração e Participações S.A. (Fertifos) and Fertilizantes Fosfatados S.A. – Fosfertil (Fosfertil), a company listed in the BM&F Bovespa. This contract is part of the process of acquiring 100% stake in Bunge Participações e Investimentos S.A. (BPI), publicly announced by Vale on January 27, 2010.

The counterpart in the contract is Yara, and the exercise of the option is subject to certain conditions, among which, the effective acquisition of the fertilizer assets of Bunge Group in Brazil. The option gives Vale’s subsidiary the right to acquire a direct and indirect stake of 15.46% in the equity capital of Fosfertil, which corresponds to 17.57% of the common shares and 14.37% of the preferred shares.

The strike price of the contract with Yara is US$ 785,121,943.00, based on the same price per share agreed with BPI, Fertilizantes Heringer S.A. (Heringer) and Fertilizantes do Paraná Ltda. (Fertipar) for the acquisition of their stake in Fosfertil.


Vale acquires Fosfertil shares