Brazil's Bradespar renews buyback plan for another year
SAO PAULO Aug 3 (Reuters) - The board of Bradespar SA, a mining and energy investment holding unit controlled by Banco Bradesco SA, renewed on Monday a plan to repurchase up to 24.8 million shares for another year after the company's two classes of stock sank an average 25 percent this year.
Bradespar, which controls Bradesco's interests in mining giant Vale SA, will repurchase up to 2.6 million common shares and up to 22.2 million preferred shares from Tuesday until Aug. 3, 2016, the company said in a securities filing.
Bradespar could spend up to 236.2 million reais ($69 million) in the plan at current prices, according to Thomson Reuters calculations.
The decision to renew the repurchase program comes after Bradespar's discount to net asset value, a measure of how undervalued the shares of an investment holding company might be, continued to widen following a tumble in Vale's shares. Adding to the 27 percent drop in Bradespar's preferred shares was the stock's removal from the benchmark MSCI Latin America stock index in recent months.
Bradespar was created in 2000 to hold and manage all of Bradesco's non-financial assets. Currently, the company holds a controlling stake in Vale and a stake in CPFL Energia SA .
($1 = 3.4510 Brazilian reais) (Reporting by Guillermo Parra-Bernal; Editing by Leslie Adler)
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