Vale (VALE3) may announce the sale of a slice of metals; Is it time to buy the stock?

Part of the market is expected Yes (VOUCH3) soon on the agreement to sell a stake in Basic metal unit. For BTG Pactual – which continues to recommend buying the stake – the operation could unlock between 2-5% of the value.

The entire unit is valued, according to market consensus, between $20 billion and $25 billion. Earlier this week, the miner received binding offers to buy a tranche of 10% of the unitAccording to Valor Economico. The proposals must be analyzed by the company’s board of directors on the 25th, according to the publication.

“This is in line with expectations and we expect to announce an agreement in the short term,” BTG said. “We see a related qualitative element here, as the deal reinforces the significant interest in Vale’s assets and energy transition issue.”

For analysts, Vale shares don’t discount the “relevant amount” of the energy transition opportunity.

They added that the company’s management remains “extremely disciplined” in its capital allocation strategy. Most of the midterm agenda is based on cash returns for shareholders — we expect 10-12% return for 2023, including buybacks.