Indofood plans acquisition

Indofood plans acquisition

JAKARTA (JP): Publicly listed PT Indofood Sukses Makmur, part
of the Salim Group, plans to issue rights shares to raise funds
to acquire 11 other companies in the group.

Indofood president Eva Riyanti Hutapea said yesterday the
four-to-one rights shares would be sold to existing shareholders
for between Rp 3,300 and Rp 4,000 each.

She said that 75 percent of the cost of the acquisitions,
expected to be about Rp 1.75 trillion, would be financed by the
rights issue. The balance would come from bank borrowings.

Four of the 11 companies -- PT Intiboga Sejahtera, PT Salim
Oil Grains, PT Bitung Menado Oil Ltd. and PT Argha Giri Perkasa
-- produce edible oils and fat.

Six of them -- PT Salim Ivomas Pratama, PT Indoagri Inti
Plantation, PT Cibaliung Tunggal Plantations, PT Gunung Mas Raya,
PT Serikat Putra and PT Indriplant -- operate plantations.

PT Indomarco Adhi Prima runs a distribution business.

Independent shareholders will be given a chance to approve the
internal acquisition at an extraordinary general meeting of
shareholders on March 17. (10)