Hunan Valin sells Fortescue Metals Group shares

Fortescue Metals Group's second-largest shareholdercoal crushing plant purchase 1 hour 20, China's Hunan Valin, has sold about $193 million of shares in the iron ore miner. State-owned Hunan Valin Iron and Steel Group on Tuesday sold 29 million shares on-market, which reduced its holding to 16.26 per cent, from 17.3 per cent, a substantial notice filed today shows.

Fortescue shares on Tuesday fell 3.32 per cent to $6.40, but are up today, and were last trading at $6.56. Hunan Valin paid $1.2 billion for its stake in Fortescue last year to become the Perth miner’s second-largest shareholder behind founder and chief executive Andrew Forrest, who holds 31 per cent. Another major shareholder, Phil Falcone’s New York hedge fund, Harbinger Capital, earlier this year also reduced its holding to below 5 per cent. Fortescue last week approved a $US8.4bn ($8.54bn) expansion to almost triple production at its Pilbara mines from 55 million tonnes per annum to155mtpa by mid-2014.