Vale Indonesia Subsidiary Issues Shares

Vale, the Brazilian iron ore miner, says its Indonesian unit PT International Nickel Indonesia (PTI), has raised $91.4m equivalent in local currency by selling 205.7m shares on the domestic stock exchange. The move puts PTI’s public float at 20%, which one local executive says is a requirement for companies listed in Indonesia. “I am sure that Vale re-issued, as they say, to get the free float up consistent with local regulatory requirements, even though they don’t need the funds and would probably prefer to take PTI private,” says an executive in charge of a privately held Indonesian company. A Vale spokeswoman declines to comment.