ASIATODAY.ID, JAKARTA – After going through a long negotiation process, the Indonesian state-owned mining holding company, PT Mineral Industri Indonesia (MIND ID) has finally reached an agreement on the acquisition price of 14% of PT Vale (INCO) shares in the range of IDR 3,000 per share, on Friday, February 16, 2024.
The total volume of shares traded reached 52.63 million, with a turnover value of IDR 199.48 billion.
The Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, said that the process of divesting INCO shares is just a matter of processing the administrative documents.
Arifin hopes that in the next few days, all administrative processes, transactions and investment clarity can be completed immediately.
Previously, the Minister of State-Owned Enterprises, Erick Thohir, stated that he had reached an agreement on the price of divesting 14% of foreign ownership shares in INCO.
Erick said that when negotiating with Vale, the Indonesian side explicitly asked for the remaining 14% share divestment obligation to be released at a discount price.
The Ministry of State-Owned Enterprises was previously known to have rejected the market price or premium offered by Vale.
“When I was negotiating with Vale there had to be discount pricing if I didn’t want to relinquish it, and this doesn’t mean I don’t like Vale. This is a principle so that professionalism in stock negotiations is also professional like Vale,” stressed Erick.
INCO is known to be completing the process of divesting 14% of the share ownership of Vale Canada Limited and Sumitomo Metal Mining Co., Ltd to MIND ID. This divestment process is a condition for obtaining an extension of the work contract (KK) in the form of a special mining business permit (IUPK).
The divestment transaction is targeted to be completed in 2024. After completion of the transaction, MIND ID will become INCO’s largest shareholder with ownership of 34% of the issued shares.
Meanwhile, Vale Canada Limited and Sumitomo Metal Mining will hold around 33.9% and around 11.5% of the shares, respectively.
In other developments, INCO recorded a profit for the year attributable to owners of the parent entity of $274.33 million throughout 2023. This profit increased 36.89% compared to 2022 results.
The profit is in line with the company’s revenue which rose 4.48% year-on-year (YoY) to US$1.23 billion. Nickel in matte production also increased 18% YoY to 70,728 metric tons throughout 2023. (ATN)
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