Vale Share Acquisition Completed, Erick Thohir Says There Will Be Joint Control Of MIND ID With VCL

SOE Minister Erick Thohir. (Photo: Mery Handayani/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that there was an agreement to exercise joint control or joint control between MIND ID and Vale Canada Limited (VCL) in the operations of PT Vale Indonesia Tbk (INCO).

This joint control is an agreement to divest 14 percent of shares into the MIND ID Mining Industry Holding BUMN. With this divestment, MIND ID officially holds 34 percent of shares in Vale Indonesia.

"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.

Erick said that the joint control process was agreed since last November 2023 and stated in the Heads of Agreement, one of which stated that MIND ID and VCL would joint control the implementation of PT Vale Indonesia's business activities.

Furthermore, Erick said this divestment was also part of Vale Indonesia's efforts to fulfill divestment obligations in accordance with the mineral and coal mining laws in Indonesia.

"In building an ecosystem, it's not a matter of winning and losing, but having to build the best and Mr. Bahlil (Investment Minister/BKPM) will ensure how continued investment can be carried out and encourage downstreaming by taking into account existing reserves with optimal investments," Erick explained.

Previously, it was reported that MIND ID had agreed to acquire shares of 14 percent of the total share ownership of PT VI with Vale Canada Limited (VCL), Sumitomo Metal Mining Co., Ltd. (SMM).

The signing of this agreement was carried out by the President Director of MIND ID Hendi Prio Santoso, Deshine Naidoo from VCL, Yusuke Niwa from SMM, Febriany Eddy from Vale Indonesia in Jakarta on Monday, February 26, 2024.

"The agreed share price is IDR 3,050 per share. MIND ID will together with VCL control PT Vale Indonesia because this is joint control or joint control over corporation," said Erick.

Meanwhile, MIND ID President Director Hendi Prio Santoso said that in the divestment process, his party prepared funds of around 300 million US dollars. Where, the 14 percent transaction process for this stock is targeted to be completed in June 2024, this year.

"The value is Rp. 3,050 per share (share), approximately 300 million US dollars, but some of them are immediately primary," said Hendi.