Vale's Revenue Offer Price Will Be Set By The End Of This Month

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) will set the share divestment bid price of PT Vale Indonesia Tbk (INCO) at the end of this month. BUMN targets the share divestment price to be lower below market price.

Deputy Minister of SOEs Kartika Wirjoatmodjo said the government, in this case the Ministry of SOEs, would ask for a discount from PT Vale Indonesia Tbk.

"But what is certain is that we have to ask for a discount. Yes, what is certain is that the offer is low from the market. The price is not yet available, I just want to include the price offer at the end of January 2024," he said after attending the 2nd Anniversary of ID FOOD, at Waskita Rajawali Tower, Jakarta, Monday, January 8.

Referring to RTI data, due to the opening of the second stock trading, INCO shares are traded at a price of IDR 4,300 per share.

Negotiations Are Running Tough

Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that the negotiations for the release or divestment of shares of PT Vale Indonesia Tbk (INCO) are still in progress. Erick said the price offered by Vale was still expensive.

Therefore, Erick said that his party continues to try to reduce the price. Erick said that the Indonesian side wants to get the best price.

As is known, Vale Indonesia's shareholders, Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd (SMM) agreed to release 14 percent of their shares to PT Mineral Industri Indonesia (Persero) or MIND ID.

"Still surviving BUMN, still negotiating," Erick said at a press conference at the Ministry of SOEs, Jakarta, written Wednesday, December 20.

Even so, Erick was reluctant to reveal the target of completing the stock divestment price negotiations. He only emphasized that he would continue to negotiate with Vale until he got value that would benefit Indonesia.

"Anyway, forever. Until we get what we want," he said.

Erick said the government had accepted Vale's decision to only release 14 percent of shares to MIND ID from the 31 percent desired by the Ministry of SOEs. Therefore, continued Erick, the pricing must also be good for the Indonesian side.

For your information, the release of Vale Indonesia's shares is a burden that must be fulfilled for the extension of the contract which will expire on December 28, 2025. Where, at least 51 percent of the shares are controlled by the Indonesian side.

The composition of Vale Indonesia's shares is 43.79 percent led by Vale Canada Limited who is also a controller. Then, 15.03 is held by Sumitomo Metal Mining. Then, 20 percent is held by the public by the Indonesia Stock Exchange (IDX).

Meanwhile MIND ID owns 20 percent of Vale Indonesia's shares that have been controlled since 2020. So with further divestment of 14 percent, Indonesia even owns 54 percent of Vale Indonesia's shares. In detail, 34 percent of the shares owned by MIND ID and 20 percent of the shares on the IDX.