Bread Processing Production - Photo by Nippon Indosari Corporindo
JAKARTA (TheInsiderStories) — Indonesian Business Competition Supervisory Commission penalized bread producer PT Nippon Indosari Corpindo Tbk (IDX: ROTI) Rp2.8 billion (US$190,476.19) for its late report over corporate action, said the agency on Monday (11/26).
On Feb. 9, 2018, the company has acquired a frozen dough company PT Prima Top Boga (PTB). But the action was reported later on March 29, or over one month after the transaction.
ROTI has violated by Article 29 of Law 5/1999 in conjunction with Article 6 of PP 57/2010 about Prohibition of Monopolistic Practices and Unfair Business Competition, according to the Commission Assembly Chairman Ukay Karyadi. The law stated that merger and acquisition must be notified at least 30 days after the action.
“On March 7, the commission has warned the reported party (Nippon Indosari) to inform its acquisition to PTB, at the latest on March 23rd,” said Karyadi.
Nippon Indosari’s plan to acquire major shares of PTB had been blowing since November 2017. It was informed in Indonesia Stock Exchange, that both parties have signed conditional shares subscription agreement and shareholders agreement on Nov. 23rd.
The acquisition plan, previously targeted to finish by the end of December 2017, but it is then delayed to 2018. According to Nippon Indosari’s financial statement, it purchased 32,051 new shares or equivalent to 51 percent ownership of PTB, on Jan. 24.
The acquisition value was Rp31.5 billion. By acquiring PTB, Nippon Indosari has vowed to invest more to it for the next three years. In third quarter (3Q) of this year, PTB’s assets valued Rp71.91 billion.
Until 3Q, Nippon Indosari gained Rp102.86 billion net profit, increased by 5.65 percent from 97.35 billion in the same period last year. While its revenue dough rose by 8.79 percent from Rp1.82 trillion to Rp1.98 trillion.
US$1: Rp14,700
Written by Staff Editor, Email: theinsiderstories@gmail.com

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