According to people familiar with the matter, China Investment Corp. (CIC) is leading a Chinese investor in the negotiations with Vale SA (ADR) (NYSE:VALE) relating to a potential billion-dollar iron-ore streaming agreement.
Asia’s Interest in Vale’s Iron-Ore Output
Accordingly, Vale is likely considering the potential acquisition of its future iron-ore output. The people familiar with the matter that the deal can reach up to about $9 billion in upfront payment. However, details of the purported negotiations have not been vague, suggesting that the actual transaction might not even push through.
A couple of Chinese and Japanese companies are also rumored to had been in talks with Vale about potential iron-ore streaming deals. Some of these include the acquisition of a minority stake in the company’s iron-ore assets. This does not seem unlikely since Vale had revealed previously that it might consider selling $10 billion worth of assets in late 2017.
Suffering from the repercussions of the slump in the global commodity market, Vale, together with industry leaders such as Anglo American plc (LON:AAL), Freeport-McMoRan Inc (NYSE:FCX), and Glencore PLC (LON:GLEN), has long been considering to unload its assets after its net debt surged to approximately $27 billion. Since the company reported its first streak of losses in 1997, Murilo Ferreira, Vale CEO, has already hinted the selling some of the company’s best assets.
On Thursday, Vale announced that the Fifth Chamber of the Federal Court of the Second Region had declined its appeal against the decision of the 12th Federal Court of Belo Horizonte on the lawsuit filed by federal entities vs. BHP Billiton Brasil Ltda., Samarco Mineracao SA, and Vale. Consequently, the settlement of the claim remains at a whopping R$20.20 billion.
In line with this, the company’s agreement with the complainants last March resulting from the lawsuit remains in effect as well.
Vale guarantees that it will be in full cooperation and compliance with the developments of the public civil action and the judicial approval of its agreement with the class as well. The company also promises to keep the public posted regarding any updates on the public civil action case.
Heritage Printing Npv (OTCMKTS:HAGE) Holds Steady Despite Discouraging Financial Report
Heritage Printing Npv (OTCMKTS:HAGE) has remained fairly stable at an average share price of $0.55, since the filing of its quarterly report, on August 15. The company has a history of long silences, with the last press release being made on June 28, 2016. This was to announce that the company had changed its name from Heritage Action Corp to Heritage Printing Technology Corp. However, the ticker HAGE and Cusip was to remain unchanged. It should be noted here that this was the sixth time HAGE changed its corporate name, since its incorporation in 1977.
The 1H2016 report from the company had been somewhat discouraging for investors, as HAGE reported that its net loss had widened to $1,674, almost four times that of the preceding year. The company once again failed to report revenue for the 1H2016 and has had no revenues to date. Moreover, due to the lack of availability of cash, HAGE has been obtaining capital from significant shareholders and the management itself, to fund ongoing operations. It also plans to continue to do so, until a time it becomes profitable.