Vale's Stock Divestment Negotiations Meet A Bright Spot, Erick Thohir: We've Found The Numbers

SOE Minister Erick Thohir/PHOTO: Mery Handayani-VOI

JAKARTA - The government through the Mining BUMN Holding, MIND ID has agreed on the share price to be purchased from PT Vale Indonesia Tbk (INCO). This agreement was successfully obtained after the previous negotiations were tough.

The Minister of SOEs, Erick Thohir, said the agreed share price would be announced after the signing between the two parties, in this case MIND ID and Vale Indonesia.

"Vale has done. Yes, hopefully, the numbers have been found. But let the announcement be signed later," said Erick after attending the 2024 BUMN Next-Gen event, in Jakarta, Tuesday, February 13.

Erick admitted that at the beginning he had asked Vale Indonesia to release shares to MIND ID at a special price, below market prices.

"If I say the numbers, what is certain is that they will come back, when I negotiate with Vale, there must be a discount pricing if you don't want to research," said Erick.

Furthermore, Erick also emphasized that his attitude so far asking prices below the market is not a form of dislike for Vale. Erick made sure to remain professional during the negotiation process.

"And this doesn't mean I don't like Vale, no. I am a principle, a principle so that what is called professionalism in stock negotiations is also professional like Vale," said Erick.

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.