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.