MIND ID Officially Becomes The Largest Shareholder, What's The Fate Of Block Voting Vale?

President Director of MIND Hendi Prio Santoso. (Photo: Doc. ANTARA)

JAKARTA - The BUMN mining holding, MIND ID officially narrowed 34 percent of PT Vale Indonesia's (INCO) shares.

MIND President Director Hendi Prio Santoso said, with an additional 14 percent stake, his party officially became Vale's largest shareholder and officially canceled the voting block agreement between parent company Vale Canada Limited (VCL) and Sumitomo Metal Mining Co Ltd (SMM).

Just so you know, the block voting agreement between the two entities was signed in order to consolidate total shares before divestment by 59.3 percent, consisting of ownership of VCL 44.3 percent and 15 percent owned by SMM.

"All the voting blocks have disappeared, we have canceled them," Hendi told the media quoted on Tuesday, February 27.

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.

Then from the management side, said Hendi, MIND ID received two seats in the board of directors of PT Vale Indonesia Tbk, namely the CEO and Director of Human Resources.

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

Meanwhile, Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that there was an agreement to conduct joint control or joint control between MIND ID and VCL in PT Vale Indonesia's operations.

"The agreed share price is IDR 3,050 per share. MIND ID will jointly control PT Vale Indonesia because this is joint control over corporation," Erick said after the signing of the Vale share divestment agreement, at Pullman Hotel, Jakarta, Monday, February 26.