MIND ID Spends IDR 4.68 Trillion To Acquire Vale Shares

Illustration of Rupiah (Photo: dock. Antara)

JAKARTA - The BUMN mining holding, Mining Industry Indonesia (MIND ID) officially took over 14 percent of PT Vale Indonesia's (INCO) shares.

To take over this share, MIND ID is known to have spent up to 300 million US dollars or equivalent to Rp4.68 trillion (assuming an exchange rate of Rp. 15,630).

MIND ID President Director Hendi Prio Santoso said the payment process would be completed in June 2025 through the capital market mechanism.

"About 300 million dollars, and it will be paid for by June next year and some will go through the capital market mechanism," said Hendi when met at Pullman Jakarta, Monday, February 26.

Hendi added that later the funds used to take over Vale's shares will come from the company's internal funds. Later, new shares will also be issued or rights issue.

"So there is a new stock issuance, where we will also subscribe, but our total is 14 percent new and the old one is 20 percent so the total is 34 percent," concluded Hendi.

In terms of management, Hendy said MIND ID received two seat rations in the board of directors of PT Vale Indonesia Tbk (INCO), namely the CEO and Director of Human Resources.

"Our CEO is MIND ID, HR Director from MIND ID too later," he continued.

In addition to the agreed quota, Hendi did not say that later there would also be a board of directors chosen by the shareholders.

On this occasion, Hendi also said that in this latest agreement, it had removed the previous agreement between Vale Canada Limited (VCL) and Sumitomo Metal Mining Co Ltd (SMM) regarding the voting block.

"The voting block said it was done. We have canceled it," he said.

For your information, block voting agreement is an agreement between VCL and SMM. Where in the agreement SMM will follow the decision taken by VCL. With this block voting, VCL as the parent of Vale Indonesia can make any decisions even if it is not the majority shareholder.