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View all search resultsMining holding MIND.ID to acquire Vale Indonesia for $392m
The acquisition is part of the Indonesia's campaign to tighten its grip on domestic mineral resources.
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tate-owned mining holding company MIND ID plans to buy a 20 percent stake of one of the country’s top nickel miners, PT Vale Indonesia (INCO), by year-end in a move that is expected to further strengthen Indonesia’s grip on domestic mineral resources.
MIND ID signed on Thursday a deal to pay Rp 5.52 trillion (US$392 million) INCO’s shareholders, Brazil-based Vale and Japan-based Sumitomo Metal Mining Co. Ltd, to acquire the stake. Vale will receive Rp 4.13 trillion and Sumitomo Rp 1.39 trillion.
Read also: MIND.ID unlikely to issue new bonds until Freeport pays dividends
The deal brings an end to year-long negotiations between the three companies.
The acquisition has been pushed back for the second time this year due to pandemic-related complications. INCO's shareholders initially scheduled the acquisition for March but postponed it to May amid market uncertainty
“This transaction demonstrates the confidence of global mining companies in MIND ID and Indonesia as a whole,” said MIND ID president director Orias Petrus Moedak on Saturday.
The deal, which values INCO’s shares at Rp 2,780 each, also grants Vale continued “financial and operational control” of INCO, the Brazil-based company wrote on Friday.
