SOE Minister Asks For Cheap Divestment Share Prices, This is What Vale Indonesia said

SOE Minister Erick Thohir. (Photo: Doc. ANTARA)

JAKARTA - PT Vale Indonesia Tbk (INCO) has opened its voice regarding the request of Minister of State-Owned Enterprises (BUMN) Erick Thohir who asked the Company to provide a low price to divest 14 percent of Vale's shares.

INCO, represented by the Chief Financial Officer (CFO) of Vale Indonesia, Bernardus Irmanto, emphasized that determining share prices is the authority of shareholders, while he as management is only tasked with providing the data and information needed by shareholders.

"Our job is to provide the necessary data and information to our shareholders, so they can discuss setting prices," he said at the 2023 Public Expose Live Press Conference, quoted on Thursday, November 30.

Moreover, he said, MIND ID, Vale Canada and Sumitomo have signed a preliminary agreement or Head of Agreement (HOA).

Bernardus said, to be able to determine share prices, you have to go through several stages, namely due diligence or due diligence which is currently still ongoing.

So the consideration of providing a discount and the price of divested shares depends on the negotiation process.

"And our shareholders will discuss and negotiate what is asked regarding whether to discount or balance one variable and so on, of course it really depends on the negotiation process carried out by the shareholders, we cannot provide further information," he explained.

He hopes that this divestment process can also be completed soon because it is an important milestone for Vale to extend the work contract (KK) to become a Special Mining Business Permit (IUPK).

For information, INCO's KK will end on December 28 2025. As a condition for extending the KK to become an IUPK, Vale is required to divest its shares to Indonesia through the state-owned mining holding, MIND ID.

"Shareholders are aware of this and are also committed to completing it as quickly as possible so that the extension of the company's mining permit can be completed as quickly as possible," concluded Bernardus.

For your information, currently Vale Indonesia shares are held by Vale Canada Limited amounting to 43.79 percent. Meanwhile, Sumitomo Metal Mining owns 15.03 percent.

Then around 20 percent is held by the public and is listed on the Indonesian Stock Exchange (BEI).

Meanwhile, MIND ID itself already owns 20 percent of Vale Indonesia's shares.

With the addition of 14 percent shares from the divestment, MIND ID's total share ownership is 34 percent in Vale Indonesia.

This portion also makes MIND ID the majority shareholder of Vale Indonesia.