Jakarta-based IndoFood offers $300m for SGX-listed agri firm in take-private move

Photo: Reuters

Jakarta Stock Exchange-listed PT IndoFood Sukses Makmur TBK, controlled by Indonesian tycoon Anthoni Salim, on Tuesday launched a cash offer to acquire Singapore Exchange-listed IndoFood Agri Resources Ltd for S$0.28 per share, in a potential S$405.38 million ($299.59 million) take-private deal.

IndoFood Sukses Makmur, the maker of Indomie brand instant noodles, currently holds 74.52 per cent in IndoFood Agri. Following the cash offer, IndoFood Sukses will acquire at least 90 per cent stake in the firm. Upon completion of the offer,  IndoFood Agri will be delisted from SGX.

IndoFood Sukses Makmur is involved in all stages of the food production including raw materials and processing of consumer products. Its total revenues for FY 2018 ending December 31, 2018 stood at IDR73.39 trillion, while net profits came to IDR4.96 trillion.

And, IndoFood Agri Resources Ltd is an integrated agribusiness group spanning the entire supply chain from research and development (R&D), seed breeding, oil palm cultivation, and milling; as well as the production and marketing of cooking oil, shortening and margarine. The company is headquartered in both Singapore and Jakarta. It is also an affiliate company with IndoFood Sukses Makmur. IndoFood Agri has total revenues of IDR14.1 trillion, and net loss to shareholders of minus IDR0.2 trillion as of December 31, 2018.

IndoFood Agri Resources Ltd was last traded at S$0.285 per share, up 2.5 Singapore cents, or 9.62 per cent intraday  following the announcement of the offer. Trading volume was active with approximately 2.83 million shares changing hands.

IndoFood Sukses Makmur was last traded at IDR6,150, down IDR375, or 5.75 per cent intraday at 9:19 am (Indonesia Standard Time). The trading volume for the Indonesian counter is relatively active with 12.13 million shares changing hands. The three-month average trading volume is 7.97 million shares, according to data obtained from Yahoo! Finance.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.