JAKARTA. Mining Industry Indonesia or MIND ID, the state-owned mining holding company, has prepared US$ 500 million or around Rp 7 trillion, to take over 20% of PT Vale Indonesia Tbk (INCO) shares.
Ogi Prastomiyono, Acting Director of MIND ID, said the funds had been included in the 2020 Corporate Work Plan and Budget (RKAP). "The funds are available, closing transactions no later than June 2020," explained Prastomiyono as quoted by Kontan on Monday (25/11) today.
For information, MIND ID and INCO have signed the Head of Agreement (HoA) on 11 October. But there is still another agreement needs to be signed by both parties, Conditional Share Purchase Agreement (CSPA). "The latest (for the agreement to be signed) is 20 December 2019," explained Prastomiyono.
MIND ID estimates that the valuation of 20% of INCO shares is still below US$ 500 million, so the funds prepared by the company (which came from syndicated loan) are estimated to be sufficient to complete the transaction. "The value of 20% of Vale's shares is not exactly that (US$ 500 billion), but it will be below US$ 500 million," said Prastomiyono. (KR/AR)