JAKARTA. Operations Director of Mining Industrial Indonesia (MIND ID), Ogi Prastomiyono said the valuation of 20% of Vale shares could be below US$ 500 million.
The funds, said Ogi, will be obtained from a syndicated loan from three banks, Sumitomo Mitsui Banking Corporation (SMBC), Bank Mandiri, and Mitsubishi UFJ Financial Group (MUFG). "The valuation is below that, but we prepare US$ 500 million," he explained.
Meanwhile Finance Director of Vale Indonesia, Bernadus Irmanto said that he could not make any comment related to the valuation, because it is still being negotiated. At present, he said, Vale and Sumitomo Metal Mining are negotiating with MIND ID to discuss the details of the divestment.
"We hope that the detail of the agreement can be completed in December 2019. The execution of the agreement is expected to be completed in June 2020," he said when contacted by CNBC on Monday (25/11).
The divestment of 20% of INCO shares is one of the conditions contained in the Contract of Work (CoW). According to Government Regulation No. 7/2014, Vale must divest 40% of its shares. Previously, 20% of Vale shares had been divested, and the remaining 20% would be divested to the Indonesian government. (AM/AR)