JAKARTA (TheInsiderStories) - Japfa Ltd., the parent of poultry producer, PT Japfa Comfeed Indonesia Tbk (IDX: JPFA) will sell 80 percent of its Southeast Asia dairy business, Greenfields Dairy Singapore, to TPG Capital Asia and Northstar Group. The agri-food company announced on Monday (07/12), the transaction have valued US$236 million.
“The group’ dairy business has grown considerably in recent years, both in China and Southeast Asia and there is potential for further growth,” said the CEO, Tan Yong Nang by adding, this strategic partnership with both partners to accelerates the next phase the uni across the region.
TPG is a global investment company from Texas, United States, and has made 88 investments in 13 countries with a value of $11 billion. While, Northstar is a Singapore headquartered private equity firm managing more than $2.2 billion of portfolios, founded by two Indonesian “crazy rich”, Patrick Walujo and Glenn Sugita.
Some of its investments by Northstar included GoJek, Indomaret, PT BFI Finance Indonesia Tbk (IDX: BFIN), Era Real Estate, PT Centratama Telekomunikasi Indonesia Tbk (IDX: CENT), PT Bank BTPN Tbk (IDX: BTPN), PT Delta Dunia Makmur Tbk (IDX: DOID), and PT Asuransi Tugu Pratama Indonesia Tbk (IDX: TUGU), and The Thai Credit Retail Bank Public Co., Ltd.
Japfa itself expect to receive approximately $244 million in cash following the proposed transaction, comprising cash of $236 million and $8 million from the repayment of a shareholder loan. The manufacturer intended to utilize around $150 million from the proceeds to pay an interim special dividend or 10 cents per unit to its shareholders.
Founded in 1997, Greenfields’ business focus is on producing fresh milk from farms and integrated processing facilities. Currently, the company has 10 thousand Holstein and Jersey cows, which produce 43.5 million liters of milk per annum. The producer also entered other Asian countries such as Malaysia, Hong Kong, and the Philippines.
Japfa owned by Indonesian entrepreneur Handojo Santosa. In August, its Indonesian unit announced to acquire 100 percent of food-maker, PT So Good Food’ shares, with worth of Rp1.2 trillion, frpm Anona Pte. Ltd., and Jupiter Foods Pte. Ltd. The acquisition was an affiliated transaction because the two companies were owned by Singapore’ firm.
The other corporate actions did by Japfa Comfeed Vietnam Co. Ltd., has planned to build a new factory in the seven-hectare Nhon Hoa industrial areas, Vietnam. The manufacturer disbursed VND300 billion ($12.92 million) for the project. The feed factory has a production capacity of 180,000 tons of animal feed per year.
The Group had invested and started its business in Vietnam since 1996. Japfa factory added to the new list of the five existing factories in the provinces of Vinh Phuc, Thai Binh, Hoa Binh, Long An. While, 71.91 percent of the parent shares are owned by the Santosa family, the descendants of the late Ferry Teguh Santosa.
The unit began investing in Vietnam under a joint venture with the Vietnam Livestock Company. In 1999, this joint venture later became a 100 percent foreign investment company under the name Japfa Comfeed Viet Nam.
In October, Japfa collaborating with a Dutch’ company, Hendrix Genetics Aquaculture BV plans to establish a broodstock multiplication center shrimp in Indonesia. Both parties has set up a joint venture to run the a shrimp breeding center.
US$1: Rp14,100, VND23,136.48
Written by Editorial Staff, Email: theinsiderstories@gmail.com
