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)