First Pacific approves Indofood acquisition

First Pacific approves Indofood acquisition

HONG KONG (AFP): Shareholders in Hong Kong's First Pacific Co. Ltd. on Wednesday approved the acquisition of 40 percent of Indonesian food maker PT Indofood Sukses Makmur Tbk for US$621 million.

Minority shareholders voted "unanimously" at a special meeting to acquire the stake in Indofood, First Pacific said in a statement.

"We are pleased to see such strong shareholder support for our decision to acquire Indofood," said Thomas Yasuda, First Pacific's managing director.

Indonesia's Salim family currently owns the majority stake in Indofood with the Indonesian government holding a 10.2-percent stake.

First Pacific is a Hong Kong affiliate of the Salim group. First Pacific originally planned to buy a 60-percent stake in Indofood, the world's largest maker of instant noodles, in partnership with Japan's Nissin Food Products Ltd.

However, the deal collapsed in the face of opposition from some of the Indonesian firm's 70-strong bank creditors.

First Pacific then said it would proceed independently with the acquisition.

Indofood last month announced a first-half net profit of Rp 825 billion (US$123 million).

Consolidated sales for the six months reached Rp 5.6 trillion, up 40 percent over the same period in 1998, with the instant noodle business contributing 40 percent of sales.

First Pacific, operating in 25 countries in Asia as well as in Europe and the United States, is engaged in a wide range of businesses including marketing, distribution, banking, property services and telecommunications.