JAKARTA (TheInsiderStories) – Affinity Equity Partners, one of the largest private equity firms in Asia, acquired a 21 percent or 6.3 billion shares of PT Industri Jamu dan Farmasi Sido Muncul Tbk (IDX: SIDO) at Rp720 a unit, said the management on Wednesday (02/03). The investor bought the shares for Rp 4.54 trillion (US$324 million) from the existing shareholders, PT Hotel Candi Baru.
The transaction helped by local brokerage firm, PT Mandiri Sekuritas. President director of the company, David Hidayat, said, three years ago both parties has a strategic agreement to made Affinity as the shareholder of the traditional drug-maker.
The move of Affinity in Sido Muncul reflected in the inclusion of Eric Marnandus and Ronnie Behar as the independent commissioners of the issuer in 2018. Apart from serving as a commissioner in the company, Marnandus also served as the executive director of Affinity Equity Partners Indonesia and Behar is the head of Southeast Asia of the venture capital firm.
Beside sold their shares to Affinity, the herbal drink producer also aimed to sell 229.77 million shares of the treasury stock or 0.8 percent of the issued and paid-up capital. The share sale is scheduled from Jan. 28 to Feb. 25, 2022.
The biggest herbal medicine manufacturer in Indonesia having more than 300 products, such as Tolak Angin and Kuku Bima Ener-G!. In nine months 0f 2020, the sales grew by 6 percent driven by higher domestic demand on healthy beverage products (Vit C 1000 and Ginger Beverages) and also recovery in GT channel.
But, export remained weak, although showed improvement on quarter on quarter (QoQ) basis. From the three key focus export countries, Malaysia showed improvement with the average monthly sales were already back to pre COVID-19 level. However, Philippine and Nigeria hasn’t showed significant recovery. Export sales is targeted 2 percent of total sales in 2020.
On August of last year, the issuer shipped the first export of Tolak Angin product to Saudi Arabia to do pipelining and product introduction to the market. In Sept. 14, the company conducted stock split with 1:2 ratio to increase the trading liquidity on the market.
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