JAKARTA (TheInsiderStories) – PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP) has signed a conditional share sale and purchase agreement to bought its shares from Pinehill Corpora Ltd., and Steele Lake Ltd for US$2.99 billion. On February 2020, both companies has offered ICBP shares to the consumer goods firm.
In details, Pinehill will received $1.53 billion and Steele Lake for $1.47 billion. Based on the official announcement, the manufacturer will use the internal cash $300 million for the transaction and the rest from bank loan facilities.
Pinehill and Steel Lake engaged in the manufacturing of instant noodle in Saudi Arabia, Nigeria, Turkey, Kenya, Morocco, and Serbia with brand “Indomie”. Both companies get the licensing from ICBP’ parent, PT Indofood Sukses Makmur Tbk (IDX: INDF).
Last year, Indofood CBP gets funds from its holding worth of Rp1.5 trillion to expand the businesses. As of March 31, 2020, the company has total assets of Rp42.1 trillion, total liabilities of Rp13.32 trillionm and cash worth of Rp8.87 trillion.
At the same year, the Indonesian multi-national company allocated Rp7 trillion of the capital expenditure for the subsidiaries. The amount lower by 23 percent compared to last year of Rp9.1 trillion. Of the total, Rp3.9 trillion distributed for ICBP, Rp1.5 trillion for flour business through PT Bogasari Flour Mills, Rp1.4 trillion to its agriculture business, and Rp200 billion for logistic distribution business.
“The source of funding is from out cash flow and bank loans. This funds will be used for the expansion of our company’ businesses such as increasing plant capacity and partially channeled to agribusiness to finance plantations that have been planted,” said Indofood’ director Thomas Tjhie after the shareholders meeting on May 29, 2019.
In 2019, the unit of Salim Group recorded a net profit of Rp4.17 trillion or grew slightly 0.24 percent compared to the prior year amounting to Rp 4.16 trillion. The company’ net profit margin also down from 5.93 percent in 2017 to 5.7 percent.
ICBP is one of a leading players in the consumer branded products sector, engaged in diverse business categories, including noodles, dairy, snack foods, food seasonings, nutrition and special foods, and beverages. The producer operates a packaging business, producing both flexible and corrugated packaging to support our main businesses. Its business operations are supported by more than 50 plants are located in key areas across Indonesia.
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