PT Indonesia Asahan Aluminium (Persero) entered into a heads of agreement to acquire 20% stake in PT Vale Indonesia Tbk (IDX:INCO) from Vale Canada Limited and Sumitomo Metal Mining Co., Ltd. (TSE:5713) for approximately IDR 5.5 trillion on October 11, 2019. Prior to the transaction, Vale Canada Limited held 58.7% stake and Sumitomo Metal Mining Co., Ltd. held 20.1% stake in PT Vale Indonesia Tbk. After the transaction, Vale Canada Limited and Sumitomo Metal Mining Co., Ltd. will hold approximately 59% stake in PT Vale Indonesia Tbk. The parties in the transaction are planning to sign the definitive agreement by the end of 2019 and to complete the transaction within six months after the execution of the definite agreement. As of December 31, 2019, the signing deadline of the definitive agreements is extended to end of the first quarter 2020. As on March 17, 2020, Vale expects to sign the divestment agreement in first quarter of 2020 and conclude within six months of agreement. As of March 31, 2020, the signing deadline of the definitive agreements is extended to the end of May 2020. As on April 29, 2010, vale expects to set and sign the final terms and conditions in 2020 and complete its divestment during 2021. As on June 2, 2020, the date for signing of definitive agreement is extended to June 30, 2020. PT Indonesia Asahan Aluminium (Persero) signed a definitive agreement to acquire 20% stake in PT Vale Indonesia Tbk from Vale Canada Limited and Sumitomo Metal Mining Co., Ltd. on June 19, 2020. Under the terms of the transaction, PT Indonesia Asahan Aluminium (Persero) will acquire will pay IDR 2,780 for each share of PT Vale Indonesia Tbk. PT Indonesia Asahan Aluminium (Persero) will acquire 14.9% stake from Vale Canada Limited and 5.1% from Sumitomo Metal Mining Co., Ltd. For its stake, Vale Canada Limited will receive IDR 4,126 billion in cash upon closing of the transaction. Vale Canada Limited and Sumitomo Metal Mining Co., Ltd. will then have a stake of 44.3% and 15.0% in PT Vale Indonesia Tbk, totaling a 59.3% participation. The transaction is subject to the regulatory approvals. As of June 19, 2020, the transaction is expected to close by the end of 2020. As of June 24, 2020, completion of the transaction is anticipated to occur in Q4 2020.

Andrew Blacoe and Matthew Goerke of Herbert Smith LLP (Tokyo, Japan) and Hiswara Bunjamin & Tandjung acted as the legal advisors for Sumitomo Metal Mining Co., Ltd. Sidharth Bhasin, James Clayton-Payne, James Webber, Mathias Stöcker, Kana Morimura and Lachlan Clancy of Shearman & Sterling LLP acted as legal advisor to PT Indonesia Asahan Aluminium (Persero). PT Bank BNP Paribas Indonesia acted as financial advisor to PT Indonesia Asahan Aluminium (Persero) in the transaction. Iqbal Darmawan from Baker & McKenzie (Zurich) acted as legal advisor to Vale Canada Limited and PT Vale Indonesia.

PT Indonesia Asahan Aluminium (Persero) completed the acquisition of 20% stake in PT Vale Indonesia Tbk (IDX:INCO) from Vale Canada Limited and Sumitomo Metal Mining Co., Ltd. (TSE:5713) on October 7, 2020. PT Indonesia Asahan Aluminium acquired 1.9 billion share representing 20% shareholding in PT Vale Indonesia Tbk.