Minister of State-Owned Enterprises Confirms MIND ID’s Readiness to Increase Share Ownership in PT Vale Indonesia Tbk

JAKARTA, KOMPAS.com – Minister of State-Owned Enterprises (BUMN) Erick Thohir confirmed that BUMN Holding Mining or MIND ID is ready to increase its share ownership in PT Vale Indonesia Tbk (INCO).

According to him, MIND ID will take whatever shares Vale releases. Currently, Vale is planning to divest 14 percent of its shares.

“No matter how much (the shares released by Vale are ready to be taken). SOEs have money. Don’t look at SOEs, they don’t have money now. We have a net income of around Rp. 250 trillion. So there is money,” said Erick Thohir when met at the Ministry of SOEs , Jakarta, Monday (17/7/2023).

Also read: Wanting to annex Vale’s shares, MIND ID’s boss insists he wants to be a controller

Currently, continued Erick, the negotiation process between MIND ID and other Vale shareholders is still ongoing. Including the matter of the amount of the share price that will be released to MIND ID.

He said the Ministry of BUMN hopes that MIND ID can become the majority and controlling shareholder in Vale. MIND ID itself currently only owns 20 percent of Vale’s shares.

“We want, if we can at Vale, we have a bigger portion. But this is still being negotiated,” said Erick.

Previously, the Main Director of MIND ID, Hendi Prio Santoso, said that his party was ready to take the shares released by Vale. However, MIND ID wants to become the controlling shareholder of Vale.

However, he was reluctant to reveal more details regarding the plan to become the controller, because the negotiation process with other Vale shareholders is still ongoing.

Hendi only emphasized that the government had given a mandate, namely that MIND ID could consolidate Vale’s financial reports.

Also read: DPR Values ​​Divestment of 14 Percent Vale Shares Still Insufficient

“The division of tasks is not clear, but we want to be in control, well this is a mandate from the government,” he said when met at the Ministry of BUMN, Jakarta, Monday (17/7/2023).

For your information, the release of shares was carried out as a condition for Vale’s contract extension which will expire in 2025, in which 51 percent of Vale’s shares must be owned by the Indonesian side.

Currently, the shareholding composition of Vale Indonesia itself consists of 43.79 percent belonging to Vale Canada Limited, which is also the controller. Then 15.03 percent belongs to Sumitomo Metal Mining Co., Ltd (SMM), and 0.54 percent belongs to Vale Japan Ltd.

Then 20 percent is owned by MIND ID, and around 21.18 percent becomes public shares listed on the Indonesia Stock Exchange (IDX).

Also read: Regarding the divestment of Vale shares, the Minister of Energy and Mineral Resources asks for a price discount

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2023-07-17 23:08:00
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