Vale's Stock Divestment Prices Are Not Suitable, Erick Thohir: Still High

SOE Minister Erick Thohir (Photo: Doc. VOI)

SOE Minister Erick Thohir said that although there was an agreement to divest PT Vale Indonesia's shares to the MIND ID Mining BUMN Industry Holding, until now the share price has not matched.

In fact, Erick admitted that the stock price valuation given by PT Vale Indonesia Tbk was still high.

"I have already answered that the master agreement for 14 percent has agreed but the valuation is not yet. Well, of course, the problem is that we feel a height valuation," said Erick when met at the Ministry of SOEs, Jakarta, Thursday, November 23.

Erick said, currently there are two options that will be pushed by his side. First, if Vale does not want to give a low price for stock divestment, then Vale's mining land will be reduced or reduced.

"One, indeed, we let him have a large area, some of which are released. All SOEs also have releases, private entrepreneurs have releases, so it could be to suppress the valuation off, one option," he said.

However, continued Erick, if the first option is rejected by Vale, then there must be a match for the stock price valuation.

"If they don't want it, we have to meet the valuation," said Erick.

Previously, it was reported that the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that the release of PT Vale Indonesia's share divestment to the MIND ID Mining BUMN Industry Holding had been decided. He said Vale's shares were transferred by 14 percent.

"Already, it has been decided. So what Vale released was 14 percent, yes," he said when met at the Ministry of Energy and Mineral Resources, Jakarta, Friday, November 10.

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 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, continued Arifin, the total shares of Vale Indonesia owned by MIND ID became 34 percent and became the majority shareholder of Vale Indonesia.

"MIND ID can be 34 percent and that's the majority of it," he said.