(Adds Vale’s board approval)
SAO PAULO, May 11 (Reuters) - Vale SA’s board approved on Thursday a definitive swap ratio of 0.9342 common share per preferred stock as part of a plan to transform the world’s No. 1 iron ore producer into a company with dispersed share ownership.
As part of the proposal, the shareholder formally known as Valepar SA would be incorporated by Vale in a mechanism that would grant bonus shares to Valepar partners, according to a securities filing.
Vale’s board agreed to send the proposal, which needs to be approved by 54.09 percent of preferred shareholders, to a shareholders assembly. (Reporting by Bruno Federowski and Tatiana Bautzer; Editing by Chizu Nomiyama and Lisa Shumaker)