The Minister Of Energy And Mineral Resources Leaked The Price Of Vale's Divestment Of IDR 3,950 Per Share Sheet

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif gave a leak related to the price of divestment of shares of PT Vale Indonesia (INCO) to the BUMN mining holding company, MIND ID.

Arifin said the price agreed by both parties was in the range of IDR 3,000 per share or below Vale's current market price.

Just so you know, on Friday, February 16, 2024, Vale's shares were priced at IDR 3,950 per share.

"Below that the market price, the head is still three (above Rp. 3,000) but the head is beating," Arifin told the media when met at the Office of the Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources, Friday, February 16.

Arifin ensured that the negotiation process between MIND ID and Vale had been completed and was just waiting for administrative matters.

"God willing, it's just an administration," continued Arifin.

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

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.