CORPORATE ACTION - JAKARTA. PT Vale Indonesia Tbk (INCO) has received approval from its shareholders to conduct a Capital Increase by providing Preemptive Rights (PMHMETD), also known as a rights issue.
“The Extraordinary General Meeting of Shareholders (EGMS) on April 19, 2024, agreed to approve the rights issue plan,” explained Bernardus Irmanto, Director & Chief Financial Officer of Vale Indonesia in a statement received by Kontan on Saturday (20/4).
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INCO plans to offer as many as 603,445,814 shares with a nominal value of Rp 25 per share. In connection with this corporate action, INCO also plans to increase its paid-up and placed capital.
This rights issue is part of INCO's divestment obligation to the Indonesian government, which is carried out by PT Mineral Industri Indonesia (Persero) or MIND ID.
MIND ID will purchase and receive a transfer from VCL, Sumitomo Metal Mining Co. Ltd. (SMM), and Vale Japan Limited (VJL) for all HMETD that will be their portion in the rights issue.
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MIND ID will also execute all HMETD and HMETD that will be MIND ID's portion in the rights issue (new share transaction) based on the definitive agreement related to the divestment signed by VCL, MIND ID, and SMM effective from February 26, 2024.
Along with the new share transaction, MIND ID will purchase and receive a transfer of some shares owned by VCL, SMM, and VJL in INCO (old share transaction) as part of the execution of the divestment obligation to represent the government.
After the completion of the takeover transaction, MIND ID will acquire an additional 14% of shares, becoming the single largest shareholder in INCO with at least 34% of shares.
As a result, after the completion of the takeover transaction, MIND ID and VCL will become joint controllers directly in Vale Indonesia.
