JAKARTA (TheInsiderStories) – Management of food producer, PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP) rated fair price of 100 percent of Pinehill Co. Ltd., (PCL) shares at US$2.86 billion. This value is lower than Pinehill Corpora and Steel Lake offering for $2.99 billion.
“Based on relevant information and prevailing market conditions, we believe that the fair market value of 100 percent of PCL equity as of Dec. 31, 2019 was $2.86 billion,” the company’ management wrote in its official statement today (07/30).
The plan, Indofood CBP to hold an extraordinary shareholders meeting on Monday, August 3, to get the approval of the acquisition plan. Recently, the company has postponed the meeting caused haven’t gotten permission from the Financial Services Authority.
For this acquisition, the company has obtained permission from the holding company in Hong Kong, First Pacific Co. Ltd. Reportedly, this food producer will buy 70.83 million shares of Pinehill or equivalent to 51 percent of the total issued and fully placed shares. Then, shares owned by Steele Lake as much as 68.05 million shares or 49 percent of the total shares that have been issued by the subsidiary.
Last year, the company received funding from PT Indofood Sukses Makmur Tbk (IDX: INDF) worth Rp1.5 trillion to develop the business. As of March 31, 2020, the company had total assets of IDR 42.1 trillion, total liabilities of IDR 13.32 trillion, and cash of IDR 8.87 trillion.
In 2019, the Salim Group’ unit posted a net profit of Rp4.17 trillion, or almost stagnant compared to the previous year of Rp4.16 trillion. The company’ net profit margin also dropped from 5.93 percent in 2017 to 5.7 percent.
Indofood CBP is involved in a variety of business categories, including noodles, milk, snacks, food seasonings, nutrition and special foods, and beverages. The producer operates the packaging business, producing flexible and corrugated packaging to support our core business. Its business operations are supported by more than 50 factories located in key areas throughout Indonesia.
While, Pinehill has 12 instant noodle production facilities in eight countries with a total population of 550 million residents and has a distribution network in 33 countries with a production capacity of 10 billion packs of instant noodles. Their main markets are Saudi Arabia, Nigeria, Egypt, Turkey, Serbia, Ghana, Morocco and Kenya.
According to Indofood CBP, this transaction is an affiliate transaction because First Pacific’s chief commissioner, Anthoni Salim, has an indirect participation of around 49 percent of Pinehill Corpora shares.
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