RIO DE JANEIRO/SAO PAULO (Reuters) - Consulting firms ISS and Glass Lewis have given a nod of approval to a restructuring plan for Brazilian miner Vale SA (VALE5.SA) VAL.N, boosting the chances of shareholder approval, a source said on Wednesday.
The corporate restructuring process, announced on Feb. 20, seeks to strengthen the company’s compliance and will be voted on at an extraordinary shareholders’ meeting on June 27.
The consulting firms are advising shareholders who will attend the meeting.
“They approved it unanimously. This is extremely positive because it demonstrates that the operation is well-regarded by the market, which increases the probability of approval significantly,” the source said, speaking on condition of anonymity.
Last month, Vale’s board of directors approved a final proposal by Valepar SA, the company’s controlling shareholder, for a restructuring that includes plans for the miner to have no defined controlling shareholder and list on the Sao Paulo stock exchange.
Vale’s preferential shares closed down 1.37 percent on Wednesday while ordinary shares lost 1.02 percent.
Reporting by Alexandra Alper; Editing by Tom Brown