Nissin, First Pacific take 60% stake in Indofood

Nissin, First Pacific take 60% stake in Indofood

JAKARTA (JP): Publicly listed PT Indofood Sukses Makmur, the
world's largest instant noodle maker, announced on Wednesday that
several of its controlling shareholders plan to transfer 60
percent of their company shares to a Dutch holding company
specifically set up for the purpose.

Indofood's chief executive officer Eva Riyanti Hutapea said in
a statement on Tuesday that the share transfer was made following
the conclusion of an agreement between Nissin Food Products
Company Limited, First Pacific Company and the Salim Group on
Wednesday.

The agreement allowed Nissan and First Pacific each to acquire
50 percent equity interest in the Dutch holding company from the
Salim Group.

"Consequently, Nissin and First Pacific each will own a 30
percent indirect beneficial interest in Indofood," Eva said.

The transaction is expected to be finalized by the beginning
of February next year, she said.

Though she did not mention the value of the transaction, Dow
Jones News Wires said that the purchase of the 60 percent stake
in Indofood would cost Nissan and First Pacific a total of
US$570 million.

First Pacific Company Limited, which is 53.5 percent owned by
Indonesia's Salim Group conglomerate, is a Hong Kong based
company with its core businesses in marketing and distribution,
telecommunications, and the property and banking sectors.

Nissin Food Products Company Limited is one of Japan's leading
food companies and a major instant noodle producer. The company
has around 40 percent of the Japanese instant noodle market.

Eva expressed confidence that the new controlling shareholders
of Indofood would further strengthen the company's core business
given Nissin's expertise in instant noodles and First Pacific's
strengths in marketing and financial management.

"Both investors are therefore expected to contribute to the
strong growth of Indofood in the future," she said.

This transaction will also enable Indofood to have greater
opportunities in the domestic and international market.

She noted that subject to the approval of Indofood's majority
independent shareholders, Nissin has agreed to extend technical
assistance to Indofood to improve efficiency in the production of
its noodles.

As a result of the transaction, the composition of the
shareholders in Indofood will change significantly, with the
Dutch holding company controlling 60 percent of Indofood, the
Indonesian government 10.18 percent, public shareholders 27.16
percent and the Salim Group the remaining 2.66 percent.

Eva said in line with their new position as controlling
shareholders of Indofood, new commissioners and directors will be
nominated by First Pacific and Nissan, she said.

Indofood is currently 62.66 percent owned by the Salim Group,
10.18 percent by the Indonesian government and the remaining
27.16 percent is owned by public investors.

Share prices of Indofood became the target of buying on
Tuesday, closing firmer by Rp 275 to Rp 4,225, with a total of
10.91 million shares changing hands. (aly)