Indofood takeover plan halted<\/p>\n
JAKARTA (JP): Publicly listed food giant PT Indofood Sukses
\nMakmur has decided to postpone its plan to acquire an affiliated
\nnoodle plant in Saudi Arabia to avoid breaching the capital
\nmarket regulations.<\/p>\n
The company said in a statement that it had to delay the
\nplanned purchase of noodle plant Pinehill Arabia Food Ltd., owned
\nby Indofood's controlling shareholder Salim Group, as Indofood
\nwas not prepared to comply with the capital market watch dog's
\n(Bapepam's) regulations on internal acquisition.<\/p>\n
The regulation, among other things, requires that a company
\nplanning to undertake an internal acquisition first has to get
\napproval from the minority shareholders.<\/p>\n
Indofood initially planned to use part of the proceeds from
\nits Rp 1 trillion bond issuance to finance the Rp 250 billion
\nacquisition. But the chief executive, Eva Riyanti Hutapea, later
\nsaid the company would finance the acquisition with bank loans.<\/p>\n
The bonds, which will mature in 2005, will be launched later
\nthis month, carrying fixed coupon rates ranging from 15.75
\npercent to 16.25 percent per annum.<\/p>\n
The bonds received a double A rating with a stable outlook
\nfrom rating agency PT Pefindo.<\/p>\n
Indofood controls over 80 percent of the domestic noodle
\nmarket. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indofood-takeover-plan-halted-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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