Brazil's BNDES closes out its stake in miner Vale

RIO DE JANEIRO: Brazilian development bank BNDES has closed out its stake in miner Vale SA, selling nearly 120 million shares in a move that raised 11.2 billion reais ($2.05 billion), three sources with knowledge of the transaction told Reuters.

The sale, carried out by the bank's equity arm BNDESPar, comes as BNDES seeks to exit its position in various companies as part of a broader government divestment plan. In November, a similar sale of Vale stock generated 2.54 billion reais.

"The bank took advantage of a favorable moment," one of the sources said.

A second source said that the stock sales took place between November and last Monday.

BNDES did not immediately respond to a request for comment.

The sources said that BNDES was still eager to reduce its holdings in state-run oil company Petroleo Brasileiro SA , but said those plans had been shelved for the time being after the company's stock plummeted on President Jair Bolsonaro's move to appoint a new chief executive.

Petrobras shares plunged 22% on Monday, wiping out 71 billion reais ($13 billion) in market value.

"(BNDES) is waiting for the turbulence to pass to avoid losses," said the first source.