PT Indofood Sukses Makmur, the world's largest maker of noodles, is planning to expand into the dairy business by fully acquiring Drayton Pte. Ltd., which owns a controlling stake in local dairy company PT Indolakto.
In a recent statement to the Indonesia Stock Exchange (IDX), Indofood said it had signed a Memorandum of Understanding (MoU) with Pastilla Investment Ltd., the owner of Drayton.
The MoU grants Indofood the authority to conduct an operational and financial appraisal of Indolakto and Drayton, which owns a 68.57 percent share of Indolakto, before acquiring them.
Indofood refused to disclose the cost of the acquisition.
Indonesia's dairy industry is considered underdeveloped, and to have a large potential for expansion. The country's consumption of milk and dairy products per capita is low compared to neighboring countries. (and)
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