Dairy buys stake in Hero

Wed, 18 Feb 1998 | Source: REUTERS

LONDON (Reuters): Trade and retail group Dairy Farm International Holdings Ltd said yesterday it was paying $36.4 million for a stake in Indonesia's PT Hero super market chain.

Dairy Farm, partially owned by Hong Kong's Jardine Matheson Holdings, said it had bought a bond from PT Hero Pusakasejati which would be exchangeable into 24.55 percent of shares in Hero after five years.

Dairy Farm has also bought a direct 6.63 percent stake in Hero, giving it an eventual total control of 31.18 percent.

Dairy Farm, which also controls 29.4 percent in Britain's Kwik Save Group Plc, said it was funding this acquisition from its existing cash resources.

Hero, founded in 1971, is one of the leading supermarket chains in Indonesia. It has a total of 71 supermarkets in Java, Kalimantan, Bali and Sumatra.

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