Vale Indonesia's 14% Divestment to MIND ID: Who are its Shareholders?

PT Vale Indonesia Tbk (PTVI) has divested 14% of its shares to the state-owned mining company, PT Mineral Industri Indonesia (MIND ID).

According to *Katadata*, this share divestment was ratified through the signing of the PTVI Divestment Commitment Heads of Agreements (HoA). The HoA was signed by MIND ID President Director Hendi Prio Santoso, Vale Canada Limited CEO Eduardo Bartolomeo, Sumitomo Metal Mining Co., Ltd. Senior Managing Executive Officer Toru Higo, and Vale Indonesia CEO Febriany Eddy.

The signing of the HoA was witnessed by President Joko Widodo, Coordinating Minister for Economic Affairs Airlangga Hartarto, and Deputy Minister of SOEs Kartika Wirjoatmodjo in San Francisco, United States (US), on Friday (17/11/2023).

This HoA is the initial step in Vale Indonesia's divestment commitment, fulfilling the requirements for the conversion of its Special Mining Business License (IUPK) with a Contract of Work (KK) expiring at the end of 2025.

MIND ID President Director Hendi Prio Santoso stated that MIND ID and Vale Canada will jointly control Vale Indonesia.

“By becoming the largest shareholder of Vale Indonesia, MIND ID and Vale Canada will have deeper joint control over the company's operations, as well as its management and future development,” said Hendi in a press release on Monday (20/11/2023).

Through this divestment, MIND ID's share ownership in Vale Indonesia has increased to 34%. Data from the Indonesia Stock Exchange (BEI) shows that before the divestment, MIND ID held 20% of the total outstanding shares, or 1.98 billion shares.

Meanwhile, the largest shareholder before the divestment, Vale Canada Limited, held 4.35 billion shares, or 43.79%.

The third-largest shareholder, below MIND ID, was Sumitomo Metal Mining Co., Ltd., with 1.49 billion shares, or 15.03%.

The remaining shares are held by non-registered public shareholders (2.02 billion shares or 20.38%) and registered public shareholders (79.73 million shares or 0.8%).

On Monday, November 20, 2023, at 16:50 WIB, the share price of the INCO-coded issuer was recorded at Rp4,650 per share, up 60 points or 1.31% from the opening price.

The volume of shares traded reached 17.51 million shares with a frequency of 3.3 thousand times and a transaction value of Rp81.30 billion. The market capitalization was Rp46.20 trillion.

The following is the composition of Vale Indonesia's shareholders based on the latest data before the share divestment as of October 31, 2023:

1. Vale Canada Limited (43.79%) 4,351,403,820 shares
2. PT Mineral Industri Indonesia (20%) 1,987,267,745 shares
3. Sumitomo Metal Mining Co., Ltd. (15.03%) 1,493,218,075 shares
4. Non-registered public shareholders (20.38%) 2,024,694,780 shares
5. Registered public shareholders (0.8%) 79,732,300 shares
6. Treasury shares 0%
Total shares (100%) 9,936,338,720 shares

(See also: Vale's Profit Reaches Rp3.40 Trillion in September 2023, Soaring 31.2%)