Indofood to sell Bogasari mill to strategic buyers

Indofood to sell Bogasari mill to strategic buyers

JAKARTA (JP): Shareholders of giant instant noodlemaker PT
Indofood Sukses Makmur approved on Wednesday a management
proposal to spin off its flour mill division PT Bogasari Flour
Mills into four separate companies.

Company president Eva Riyanti Hutapea said the shareholder's
approval would lead to the transfer of the Bogasari assets to
Purply Holding BV, a Dutch-based holding company wholly owned by
Indofood.

Eva said the transfer to the Dutch company's balance sheets
was slated for early next year.

"When the transfer is complete we will then invite strategic
investors to buy up to a 60 percent stake of the four separate
companies," Eva said, adding that the move was to improve the
company's cash balance and equity.

With total assets of Rp 3.4 trillion, PT Bogasari Flour has
been split into four companies: PT Bogasari Sentra Flour Mills,
with a 2.3 million ton per year capacity, PT Intisari Flour Mills
with a 1.3 million ton per year capacity, flour bag manufacturer
PT Inti Abadi Kemasindo with an annual capacity of 100 million
bags and shipping company PT Indobahtera Era Sejahtera.

"There are more than 12 potential investors that have shown
their interest and begun talks with us in regard to the purchase
of Bogasari companies," Eva said.

Australian Wheat Boark Ltd. and Canada Bond Cargill Inc. are
two of the investors currently interested in buying stakes in
Bogasari companies.

Eva said that following the company's extraordinary
shareholders meeting, the sale of shares in Bogasari companies
would allow Indofood to concentrate on its core business of
branded consumer products.

The company however said that the Bogasari divestment plan was
subject to the approval of the Indonesian Investment Coordinating
Board (BKPM) and the company's next extraordinary shareholders
meeting, which is slated for early next year.

Indofood's shareholders also approved the appointment of new
commissioners and one director, following a 40 percent purchase
of the company's stake by Hong Kong-based conglomerate First
Pacific Co.

The shareholders approved the appointments of First Pacific's
Manuel Pangilinan as chairman of the board of commissioners,
replacing Salim group chairman Sudono Salim -- who is also known
as Liem Sioe Liong -- and Ibrahim Risjad as vice president-
commissioner.

The shareholders also approved Salim Group's Anthoni Salim and
First Pacific's Thomas Yasuda, Michael J.A. Healy and Darryl J.
Kineally to sit as commissioners, replacing Aang Kunaefi, Putera
Sampoerna, Benny Santoso, Tedy Djuhar and Herman Djuhar.

In addition, First Pacific's Edward Tortorici was announced as
the new company director, with Eva Riyanti Hutapea, Franciscus
Welirang, Cesar M. de la Cruz, Iwan Arisanto, Sri Dewi Subijanto,
Indra Josepha, Gaotama Setiawan, Djoko Wibowo and Aswan Tukiaty
retaining their respective posts as president director and
directors.

First Pacific bought the Salim family's 40 percent share in
Indofood for US$4621 million in late June.

The Salim family hold about 53 percent of First Pacific.

The sale was a move by the Salim family to restructure all
their business activities in Indonesia following the economic
crisis and the fall of former president Soeharto, a long time
friend of the group's chairman Sudono Salim.

Indofood's current shareholders comprise Hong Kong-based First
Pacific Co. Ltd. with 40 percent, the Salim Group with 10.1
percent and the investing public with 49.9 percent. (udi)