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Inalum might absorb 20% of Vale Indonesia shares divestment

04 February 2019 07:26 AM  Company: PT. Vale Indonesia Tbk[INCO]
Rp. 2,460  -10 (-0.4%)

JAKARTA. The Ministry of State-owned Enterprises (SOE) through mining industry holding company PT Indonesia Asahan Aluminum (Inalum) is rumoured to be absorbing 20% ​​of PT Vale Indonesia Tbk (INCO) shares which will be divested no later than October 2019.

Deputy SOE Minister for of Mining, Strategic Industry and Media Fajar Harry Sampurno said the ministry is interested in taking the shares. However, the ministry still has not given an assignment to which company 20% of INCO's shares will be absorbed.

"Surely the ministry is interested, but there is no assignment yet," Mr Sampurno said on the sidelines of a mining downstream discussion held by Inalum in Jakarta last week.

Furthermore, according to the Director of Mineral Development and Business of the Ministry of Energy and Mineral Resources Yunus Saefulhak, the Ministry of Energy has received a letter of readiness to divest from INCO. According to Mr Saefulhaq, this process is still a corporate action from INCO which must be reported to the government.

Vale has also given a report to the Ministry of Finance while offering to the Ministry of BUMN. "Corporate actions will also be given to the government, to SOEs. Yes, they have [been offered], Inalum and Aneka Tambang," Mr Saefulhak said.

However, President Director of PT Aneka Tambang Tbk (Antam) Arie Prabowo Ariotedjo said he is not interested in absorbing 20% ​​of INCO's shares. This is because this year Antam prefers to focus on developing its downstream business with a number of development projects and development of smelter and processing plants.

Meanwhile, Inalum President Director Budi Gunadi Sadikin has signaled his interest in 20% of INCO's shares.

Mr Sadikin said that nickel, which is a commodity of INCO, has strategic value, especially as a raw material for batteries to support the development of electric cars. (AM/MS)

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PT. Vale Indonesia Tbk [INCO]   Rp. 2,460   -10 (-0.4%)