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CORPORATE ACTION-JAKARTA. The mining industry holding, MIND ID officially took over 14% of PT Vale Indonesia Tbk's (INCO) shares with a value of Rp 3,050 per share.
This agreement is outlined in the signing of the Definitive Transactions Agreement for The Acquisition of PTVI Shares between MIND ID and Vale Canada Ltd. and Sumitomo Metal Mining Co. Ltd. on Monday (26/2) in Jakarta.
The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, revealed that this acquisition marks the end of the long journey of transferring Vale Indonesia's shares.
According to him, INCO has been known as one of the nickel companies with good management of Environmental, Social, and Governance (ESG) aspects. However, there are still challenges in downstreaming.
"Even though the ESG has been well managed, I see that the downstreaming program is still far from the others. We want to go down to the point where kitchen utensils can also be made in Indonesia, so this downstreaming really reaches the small things and this will create jobs," Luhut continued.
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On the other hand, Luhut asked that all licensing processes be immediately completed after this signing.
One of them is related to the extension of the operating license for INCO, which has four KK licenses with production operation stages that will end on December 27-28, 2025.
"Licenses that have not been issued should be immediately resolved, especially IUPK, if possible within this week," Luhut emphasized.
After this acquisition, MIND ID will hold 34% of INCO's shares and become the largest shareholder.
MIND ID's CEO, Hendi Prio Santoso, revealed that the total value of this acquisition is around US$ 300 million.
"It will be paid off by June next year and some will be through the capital market mechanism," said Hendi.
Hendi explained, there will be a new share issuance or right issue. Clearly, the total shares that MIND ID will hold will reach 34%.
"So there will be a new share issuance, where we will also subscribe. But our total is 14% new and the old one is 20% so the total is 34%," Hendi concluded.
