Indonesia state miner secures financing to acquire a stake in Vale Indonesia

A mining truck. Photo: Arno van Rensburg

Indonesia‘s state mining holding company Mining Industry Indonesia has secured loans from two Japanese banks and a state bank to finance a stake acquisition from PT Vale Indonesia, a director said on Monday.

The state company has agreed to acquire a 20% stake in nickel company Vale Indonesia as foreign controlled miners are required to reduce their ownership to at least 49%.

“We are getting new loan from three banks,” Ogi Prastomiyono, a director at Mining Industry Indonesia, told reporters, naming Japan’s Sumitomo Mitsui Banking Corporation, MUFG Bank and Indonesian state-controlled Bank Mandiri.

On Friday, Prastomiyono said the stake will be acquired for $500 million, but on Monday he said $500 million is what Mining Industry has set aside for the deal but aims to acquire the stake for less than that.

He said the stake is likely to be valued at more than $400 million, but less than $500 million.

Vale Indonesia‘s market valuation currently stands at $2.33 billion.

A conditional sales purchase agreement is expected to be signed mid-December, he added, and the transaction is targeted to be concluded by June 2020.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.