Erick Thohir Hopes Vale Divestment Price Negotiations Completed in 2 Months

TEMPO.CO, Jakarta - Minister of State-Owned Enterprises Erick Thohir opened his voice regarding the latest news regarding the share divestment of PT Vale Indonesia Tbk. (IDX: INCO). Erick Thohir said the head of agreement (HoA) for the divestment had been signed in America.

Erick said the HoA agreed that MIND ID, the holding company of SOEs engaged in mining, would get 14 percent of Vale Indonesia shares through the divestment, giving it a total ownership of 34 percent.

"We are still trying to negotiate the pricing or valuation with Vale, which hopefully will be resolved over the next month or two," Erick said in a working meeting with the DPR's Commission VI in Jakarta, on Monday, December 4.

Meanwhile, SOE Deputy Minister Kartika Wirjoatmodjo said that his ministry is calculating the price of Vale shares that will be purchased by MIND ID. According to Kartika, there is a share price in the public that is a consideration. The ministry also takes into account the company's reserve value and future cash flow.

One thing for sure, Kartika said, the SOE Ministry wants Vale's share price for MIND ID to go below the market price. However, so far Vale has not provided an offer price. "They are still waiting for the valuation."

Amelia Rahima Sari

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