January 11, 2017 / 12:45 PM / 2 years ago

Brazil's Funcesp considering selling Vale shares, Valor says

SAO PAULO, Jan 11 (Reuters) - Fundação Cesp, Brazil’s largest private-sector pension fund, is considering the partial or full sale of a 200 million-real ($62 million) stake it owns in Vale SA, the world’s largest iron ore producer, Valor Econômico said on Wednesday.

Funcesp, as the São Paulo-based fund is known, is the smallest member of a group of domestic pension funds that form part of Vale’s controlling bloc. Funcesp has 1.1 percent of Litel Participações Ltda, an investment vehicle grouping peers Previ Cauixa de Previdência, Petros Fundação and Funcef Fundação dos Economiários.

“I think that if the opportunity arises, we could consider, indeed, selling,” Martin Glogowsky, president of Funcesp, told Valor in an interview. “We would only move towards a sale from the standpoint of returns.”

Glogowsky’s remarks come as the agreement that groups Vale’s largest shareholders in a common bloc is poised to expire. The agreement that created Vale’s controlling bloc was written in 1997, when the mining giant was privatized.

A press representative for Funcesp confirmed Glogowsky’s remarks.

Preferred shares of Vale rose 1.6 percent to 26.58 reais in early morning trading in São Paulo. The stock has more than tripled over the past 12 months.

$1 = 3.2172 reais Reporting by Guillermo Parra-Bernal; Editing by Chizu Nomiyama

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