FP to buy 8% Indofood stake

FP to buy 8% Indofood stake

HONG KONG (Dow Jones): Shareholders of First Pacific Co. on Monday approved a US$77 million deal in which the Hong Kong conglomerate will buy an additional 8 percent stake in Indonesian PT Indofood Sukses Makmur, First Pacific said in a statement.

As reported in September, First Pacific will issue about 222 million new shares at HK$2.70 apiece for the 8 percent stake in Indofood, which will boost its holdings in Indonesia's biggest food company to 48 percent.

The new First Pacific shares will be issued to Liem Investors, which already owns 43.6 percent in First Pacific. After the transaction, Liem Investors will own 47.6 percent in the conglomerate, the statement said.

"Indofood was the largest contributor to First Pacific's 2000 half year profits and our further investment...in this company will be earnings enhancing," First Pacific's chief operating officer and finance director Michael J.A. Healy said.

First Pacific, which is controlled by the Salim family, has over the past few years shed most of its Hong Kong assets and focused its acquisition strategy on Indonesia and the Philippines.