Vale Indonesia shareholders approve rights issue plan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2024
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Should l Buy ?
Source: Yahoo Finance
- Shareholders Approve Rights Issue: Shareholders of PT Vale Indonesia approved a rights issue to allow the acquisition of a stake by Indonesia's state mining holding company MIND ID.
- Divestment Requirement: Vale Canada and Sumitomo Metal Mining will sell 14% of the Indonesian unit to MIND ID to meet a divestment requirement for a new mining permit.
- New Share Issuance: Vale Indonesia will issue 603 million new shares under the rights issuance, with Vale Canada, Sumitomo, and Vale Japan relinquishing their entitlement to MIND ID.
- Increased Stake: MIND ID will become the largest shareholder with a 34% stake in the nickel company, up from 20%, making MIND ID and Vale Canada joint controllers of Vale Indonesia.
- Mining Permit Requirement: The divestment is necessary for Indonesia to grant a new mining permit to Vale Indonesia, as its current contract expires in 2025.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
