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INCO divestment will be carried out proportionally

29 August 2018 06:26 AM  Company: PT. Vale Indonesia Tbk[INCO]
Rp. 2,480  -70 (-2.75%)

JAKARTA. The plan of PT Vale Indonesia Tbk (INCO) to divest part of its shares continues. Management ensures that the divestment of shares from each shareholder will be carried out according to their respective portions.

Vale Canada Limited is the 58.73% holder of INCO shares. While Sumitomo Metal Mining controls 20.09%. The remaining 20.49% is a public shareholder.

"Divestment of 20% to the public will be carried out proportionally," said Managing Director of INCO Nico Kanter, Tuesday (28/8).

With this assumption, it is estimated that Vale Canada will release around 12% of the shares. The rest is the portion that Sumitomo must release.

As is known, in accordance with the 2014 work contract amendment, INCO is required to divest 40% of its shares. As much as 20% of the shares have already been released some time ago. The remaining 20% divestment will be made no later than October 2019.

According to Nico, now, the process is in the valuation stage. "Immediately after that the price is complete, the divestiture is immediately carried out."

However, in accordance with regulations, INCO did not immediately release its investment shares to the public. The company will offer to the government first.

If they refuses, the bid will be continued to the regional government. This process continues to repeat itself to national private companies if BUMN and BUMD are not willing to buy INCO shares.

Offering directly to the public through the Indonesia Stock Exchange (IDX) is the last option. "The proceeds will go to Vale Canada," added Nico.

In addition to divestment, INCO is also completing the establishment of two joint ventures (JVs). The two JVs will be involved in the construction of each smelter in Bahodopi, Central Sulawesi and Pomala, Southeast Sulawesi. INCO is currently looking for partners for the JV project.

Nico hopes, before this year ends there are already a number of names that are potential partners for INCO. "So that the development plan can begin to be realized next year," added Nico.

If it is realized, INCO will be able to produce first class nickel at Pomala. In contrast to second-class nickel which is only for stainless steel raw materials, nickel is a battery raw material. (AM/HR)

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PT. Vale Indonesia Tbk [INCO]   Rp. 2,480   -70 (-2.75%)