Jakarta, CNBC Indonesia – BUMN Minister Erick Thohir opened his voice regarding negotiations on the price of the 14% share divestment that will be released by PT Vale Indonesia Tbk (INCO) to the MIND ID Mining Industry Holding.
Erick Thohir, who is also the Coordinating Minister for Maritime Affairs and Investment ad Interim, stated that negotiations were still ongoing. He asked that the 14% divestment price be obtained as cheaply as possible.
“We are still negotiating. Yes, we are negotiating the cheapest possible price,” said Erick when met on the sidelines of the launch of the Just Energy Transition Partnership (JETP) Funding Commitment (CIPP), at the Office of the Ministry of Energy and Mineral Resources (ESDM), Jakarta, Tuesday (21/11/2023).
If INCO cannot meet the cheap share price for share divestment to MIND ID, then there is a possibility for INCO’s operational land to be reduced or relinquishment. “Yes, we can’t (market price). If that’s the case, we will relinquish some of what they have that doesn’t comply with the commitment,” he added.
Meanwhile, he also said that negotiations on the share price for INCO’s divestment to MIND ID were going hard. He emphasized that the valuation must go well.
“Because this is our responsibility. And the example of what Vale has done is very positive. Because there is Volkswagen, there is also something called Ford, but there is a long-term commitment from them which has not been delivered at that time. So if that is part of checking up they have a valuation Yes, it’s not fair,” he said.
Previously, the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, wanted the share price of PT Vale Indonesia that would be offered to the MIND ID Mining BUMN Holding to be cheaper than the market price. “(Vale’s share price) is important, it must be cheaper than the market price,” said Arifin when met at the Ministry of Energy and Mineral Resources Building, Jakarta, Friday (17/11/2023).
The 14% divestment will come from Vale Canada Limited shares, namely Vale’s central company and Sumitomo as Vale’s shareholder. However, Arifin has not yet revealed the amount. “Yes, the prices will not be rushed yet,” he said.
As is known, Vale’s share ownership in Indonesia through MIND ID is currently only 20%, and around 21.18% is spread across the Indonesian stock market. This means that if the additional shares are only 14%, then MIND ID will own 34% of Vale’s shares.
Meanwhile, the majority of Vale’s shares are currently held by Vale Canada Limited (VCL) with a composition of 43.79% shares, then Sumitomo Metal Mining Co. Ltd (SMM) of 15.03%.
However, it is still uncertain whose shares will be reduced, whether only those belonging to VCL or together with shares belonging to Sumitomo Metal Mining Co Ltd (SMM).
[Gambas:Video CNBC]
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