HK's First Pacific says Indofood deal in doubt

HK's First Pacific says Indofood deal in doubt

HONG KONG (Dow Jones): Conglomerate First Pacific Co. warned on Monday that its plan to acquire 30 percent of Indonesia's largest food producer, PT Indofood Sukses Makmur (PT ISM) for US$285 million may not go through because some conditions of the deal haven't been met.

The company said in a statement to the Stock Exchange of Hong Kong that "the unfulfilled conditions include obtaining certain third party consents and approvals" but talks are continuing. But it warned that "there can be no assurance that these issues will ultimately be resolved" to the satisfaction of the companies involved in the deal.

If the issues aren't resolved, then the parties involved in the deal may either waive the relevant conditions or terminate the agreement, First Pacific said.

The company didn't give further details of the issues and calls to First Pacific weren't immediately returned early Monday.

First Pacific said in February that its minority shareholders unanimously approved its plans to buy 30 percent of PT Indofood, paving the way for the deal to proceed.

In mid-December, First Pacific announced plans with Japan's Nissin Food Products Co. to acquire 60 percent of Indofood from the Salim Group in a deal valued at US$570 million.

A spokeswoman for First Pacific later told Dow Jones Newswires the conglomerate can't comment on the problems or give details of the hold-up, which it hopes to resolve as soon as possible. She added that the company "didn't have a specific timetable" for the talks.

Indofood shares on the Jakarta Stock Exchange (JSX) lost about 8 percent to close at Rp 5,800. The noodle maker's shares fell in reaction to the warning made by Pacific Co that its plan to buy 30 percent of Indofood may not go through, citing unfulfilled conditions.