First Pacific bids for stake in Indofood Sukses Makmur

First Pacific bids for stake in Indofood Sukses Makmur

HONG KONG (Agencies): Hong Kong's First Pacific Co. Ltd. has announced a solo bid to buy 30 percent of Indonesian foodmaker PT Indofood Sukses Makmur after the collapse of a takeover deal with Japan's Nissin Food Products Ltd.

First Pacific, cited by the South China Morning Post, blamed the deal's failure to opposition from a small number of Indofood's 70-strong bank creditors.

First Pacific and Nissin said in December they had together agreed to buy a 60-percent stake in the major Indonesian food maker, the world's largest maker of instant noodles.

But the deal was held up pending approval from creditors.

Thomas Yasuda, managing director of First Pacific, said the Hong Kong firm intended to acquire independently the 30 percent attributable interest it had sought in Indofood and possibly extra shares in the company.

"We're disappointed the deal with Nissin can't go through. But we will pursue as vigorously as we can (the purchase of) the 30 percent stake in Indofood because the company is very important to us," he told the daily.

The deal had required the unanimous approval of Indofood's bank creditors.

Yasuda was quoted as saying that "a few" creditors had refused to promise not to recall loans.

The Salim group currently owns 62.7 percent of Indofood and the Indonesian government holds a 10.2-percent stake. First Pacific is a Hong Kong affiliate of Salim.

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.

Separately, Nissin officially announced Wednesday that it would not be buying a 30 percent stake in Indonesia's dominant noodle maker, PT Indofood Sukses Makmur.

In December 1998, Nissin Food signed an agreement with Hong Kong conglomerate First Pacific Co. and Indonesia's Salim Group to take a combined 60 percent stake in Indofood.

A Nissin spokesman declined to give a detailed explanation of why the deal has fallen through, saying only that Nissin had failed to reach an agreement with Indofood's creditor banks. The issue "involved confidential matters between Indofood and First Pacific" he added.

As reported, the deal collapsed Tuesday just as the Indonesian noodle giant said a 77 percent jump in 1998 sales helped it swing to a net profit.

Indonesia is the world's second largest market of cup and bag instant noodles after China. Japan is the third largest.

Indofood has an 80-90 percent share of the Indonesian noodle market. The Salim group has been seeking to restructure its holdings in the wake of the Asian crisis and the fall of former president Soeharto, a close friend of Salim's founder, Liem Sioe Liong.

Nissin Foods said it will focus its efforts in the Indonesian market on P.T. Nissin Mas, an established instant noodle and manufacturing company it operates with Indofood.

A Nissin spokesman said that the company has no plans at present for other corporate acquisitions in Indonesia.