Pacific to buy Indofood

Pacific to buy Indofood

HONG KONG (AFP): Hong Kong-based conglomerate First Pacific Co. Ltd. said Tuesday it would spend US$650 million to buy a 40- percent stake in Indonesian foodmaker PT Indofood Sukses Makmur.

In a statement to the Stock Exchange requesting that trading in its shares be suspended pending a detailed announcement, First Pacific said it planned to place at least $150 million in new shares as part of the deal.

First Pacific originally planned to buy a 60 percent stake in Indofood, the world's largest maker of instant noodles, in partnership with Japan's Nissin Food Products Ltd.

However, the deal collapsed in the face of opposition from some of the Indonesian firm's 70-strong bank creditors.

First Pacific then said it would proceed independently with the acquisition of a 30-percent stake from Indonesia's Salim family, with local newspapers reporting the company planned to add a further 10 percent to its holdings.