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.