Vale Officially Releases 14 Percent Of Shares, Minister Bahlil Asks For Fair Prices

JAKARTA - PT Vale Indonesia Tbk officially released its share ownership of 14 percent to MIND ID.

The Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, requested that in this divestment process, Vale not give too high prices.

"We have to respect investors, but also investors don't give SOEs a fair price," he told the media, Friday, November 10.

Regarding prices, said Bahlil, MIND ID and Vale are still negotiating business to business (B to B) so that there is still no official agreement from both parties.

However, he stressed, the price that Vale gave to the state-owned mining holding was not burdensome.

Just so you know, the process of divesting shares by Vale is a requirement for the company to extend its work contract to a Special Mining Business License (IUPK) which will expire in December 2025.

Regarding the contract extension permit, said Bahlil, President Joko Widodo had approved a limited meeting some time ago.

"Yesterday we sold it. Now it's just a little more finalization, and in principle it has been agreed to extend it," continued Bahlil.

With the addition of shares of 14 percent, MIND ID's shares, which previously amounted to 20 percent, will increase to 34 percent.

"The public shares are now 20 percent listed in the public, so it is possible that SOEs will get an additional 34 percent, so if accumulated it is the same as 54 percent," continued Bahlil.

Met separately, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif also asked Vale to give Indonesia a special price for the extension of the KK to become an IUPK.

Arifin also explained that the 14 percent divestment of Vale Indonesia's shares to MIND ID was an agreement between shareholders on a business to business (B2B) basis.

"It's talking together (between shareholders), the important thing is that the price must be special price for us," he explained.

The reason is, Vale had previously promised to provide a cheaper price for Indonesia.

For your information, Vale Indonesia's shares are currently held by Vale Canada Limited at 43.79 percent.

The company is also the controller. Then, Sumitomo Metal Mining owns 15.03 percent. Meanwhile, Vale Japan Ltd owns a 0.54 percent stake.

Meanwhile, about 20 percent is held by the public by being released on the Indonesia Stock Exchange (IDX). Meanwhile, MIND ID itself already owns 20 percent of Vale Indonesia's shares.

With the addition of 14 percent of the shares from the divestment, the total shares of Vale Indonesia owned by MIND ID became 34 percent and became the majority shareholder of Vale Indonesia.