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.