JAKARTA (TheInsiderStories) - Bread producer, PT Nippon Indosari Corpindo Tbk (IDX: ROTI) plans to buyback 300 million shares with total values of Rp480 billion (US$32.87 million) to stabilize the stock price and to manage long-term capital. The share buyback will be carried out in three months, starting April 20 to July 19, 2021.
The company limits the buyback price to a maximum of Rp1,600 a share. The issuer has appointed PT BCA Sekuritas as a broker for the transaction.
Last year, Nippon Indosari has sold the treasury shares owned by the company to Singapore-based, Lief Holdings Pte. Ltd., for Rp459.42 billion also helped by BCA Sekuritas. After the transaction, Lief Holdings will hold 6.06 percent of bread-maker’ shares. The buyer owned by the Yap family and Wendy Yap, who is currently the president director of the bread-maker.
Most of the funds, said the management, will be use for the company’ business expansion, especially in the bakery products in the country and paying its short-term debt. The manufacturer also has divested all of its shares in its subsidiary operating in the Philippines. The company had signed a share purchase agreement for its shares in Sarimonde Foods Corporation with Monde Nissin Corp.
The company, which makes Sari Roti brand, has agreed to sell and transfer 55 percent of its shares to the Philippine-based company with the divestment value is equivalent to P256.15 million ($5.23 million). Beside divests its assets, the management strived to maximize the company businesses by build two bakeries in Banjarmasin, South Kalimantan and Pekanbaru in Riau province.
Currently, the company operated 14 factories with 13 factories strategically located in Indonesia and one in the Philippines with a total production capacity of 5 million loaves of bread per day.
“These two new factories not only supply South Kalimantan, but also West Kalimantan and Pontianak. While, the factories in Pekan Baru will be equipped with West Sumatra, Jambi and surrounding areas,” wrote the management.
Established in 1995, the company has 10 manufacturing facilities across eight cities across the country. The company produces and sells a wide range of bread and cake products which have become a recognized staple in many Indonesian homes. Its products are distributed across its extensive network of 67,000 points of sale across both modern trade and general trade channels.
ROTI‘ shareholders consist of PT Indoritel Makmur Internasional Tbk (IDX: DNET) with 25.77 percent of ownership, Bonlight Investment Limited 20.79 percent, Pasco Shikishima Corporation 8.5 percent, Demeter Indo Investment Pte. Ltd., 22.16 percent, Lief Holdings Pte. Ltd., 6.06 percent, and public 16.72 percent.
US$1: Rp14,600, P48.29
Written by Editorial Staff, Email: theinsiderstories@gmail.com
