JAKARTA (TheInsiderStories) – PT Indofood Sukses Makmur Tbk (IDX: INDF), business arm of the Salim Group, revised the price of a conditional cash offer for all shares of Indofood Agri Resources Ltd (IndoAgri), said the company last week.

Based on a disclosure information at the Singapore Stock Exchange on May 31, Indofood announced that it would increase the offer price to S$0.33 (US$0.45) in cash after adjusting for IndoAgri dividend payments for 2018. Initially, the bid price for each IFAR share is S$0.28 in cash.

On May 24, the multinational company extended the purchase period of IFAR offering shares until June 25, 2019, from previously end on May 24. Total offered received by the company was 102.82 million shares, representing 7.37 percent of the total IFAR shares, so that the offer conditions were still not fulfilled.

The company represented by the CIMB Bank Berhard in Singapore will return to disclosure of information on time after the offer conditions have been fulfilled. If the offer conditions are met, the ownership level of the company group at IFAR will increase to more than 90 percent.

As known, INDF owns 74.34 percent of IFAR shares when bidding on the remaining IFAR shares and being listed on the Singapore Exchange Securities Trading Ltd.

This offer, according to Indofood management, applies to all IFAR shares other than those that have been held by the Company Group on the offering date. Accordingly, the offer will cover 25.66 percent of IFAR’ total shares.

Meanwhile, First Pacific Investments Ltd. and First Pacific Investment, which together owns 0.14 percent of IFAR shares, doesn’t accept the offer and will not sell the IFAR shares that they own. The two entities have the same controlling party as the company.

Based on the 2018 report, IFAR’s outstanding shares totaled 1.40 billion shares. Meanwhile, the ownership of unit of Salim Group shares in IFAR is 1.04 billion shares.

Thus, the number of shares to be acquired is 358.14 million shares. When referring to the bid price, the funding for this share buyback is S$100.28 million or around Rp1.05 trillion ($72.92 million).

In the first quarter of 2019, recorded an income growth of 8.73 percent to Rp19.17 trillion from Rp17.63 trillion. In fact, the company’ net profit increased 13.5 percent to Rp1.35 trillion from Rp1.19 trillion.

Salim Group issuer also recorded a gross profit margin of 30.26 percent from 29.83 percent.

US$1 = S$1.37

by Linda Silaen, Email: linda.silaen@theinsiderstories.com