Govt sells stake in Indofood

JAKARTA (JP): The government has sold its remaining 86.3 million shares, or about 4.7 percent, in publicly listed instant noodle maker PT Indofood as part of the ongoing privatization program.

The office of the state minister of the empowerment of state enterprises announced on Wednesday that the shares were sold to fund managers through the Jakarta Stock Exchange at Rp 5,800 per share on Tuesday.

The placement price was 7 percent below the closing price of Indofood shares during the day, but was about 16 percent higher than the Rp 5,000 per share the government obtained in the sale of 100 million shares last January.

The government raised about US$60 million from the latest transaction, according to PT Jardine Fleming Nusantara, which jointly carried out the deal in cooperation with PT Danareksa Securities and PT Bahana.

Indofood's majority owner, the Salim Group, has agreed to sell a 60 percent stake in the company to Japan's Nissin Food Products Co. and Hong Kong's First Pacific Corp. for $570 million, or Rp 3,950 per share.

But First Pacific said recently the deal hit a snag with the pending approval of third parties to the sale.