by Ulisari Eslita
Brazil iron-ore miner, Vale said in a recent securities filing that its Canadian subsidiary had reached an agreement to sell a 20% stake in the nickel producer PT Vale Indonesia (INCO) to state-controlled PT Indonesia Asahan (Inalum). Vale's Canadian subsidiary will receive $290 million for sale, in which Sumitomo Metal Mining participates.
Vale and Sumitomo would then have a stake of 44.3% and 15% in INCO, totaling a 59.3% participation. The transaction, expected to close by the end of this year, is in line with Indonesia's moves to gain greater control of local mining operations.
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.
Prior to that, Inalum recently raised $2.5 billion from issuing global bonds. The bonds were sold in three tranches, of maturities 5, 10 and 30 years, the Ministry of State-Owned Enterprise said in a statement, with coupon rates of 4.75%, 5.45%, and 5.8% respectively. The proceed will be used to refinance Inalum’s maturing $1 billion in debt, as well as for project financing.
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