QAF to weather turmoil

QAF to weather turmoil

SINGAPORE (Reuter): QAF Ltd., controlled by Indonesia's Salim Group, said yesterday it does not expect the regional turmoil in financial markets to have a material impact on the group's business.

The company makes Gardenia bread and operates a chain of Smart supermarkets.

The company will be transformed into one of the largest food companies in Southeast Asia when its proposed acquisition of a 50.1 percent equity interest in Indonesia's PT Indofood Sukses Makmur goes through.

QAF said in a statement it had agreed to acquire Indofood for a total consideration of Rp 4.68 trillion , or approximately Singapore $2.75 billion based on interest rate prevailing at the time of the announcement on 15 July 1997.

The acquisition is to be financed by way of a 5-for-1 rights issue and additional bank borrowings, said the statement with its interim results.