Sierad to sell Wendy's, Hartz Chicken

Publicly listed poultry and feed products producer PT Sierad Produce plans to sell subsidiaries, including PT Wendy Citrasa, the license-holder for the U.S.-founded Wendy's fast-food chain, and PT Sierad Pangan, the operator of Hartz Chicken restaurants.

Other units up for sale are PT Biotek Indonesia, a poultry feed and drug producer, and a feedmill in Lampung.

Proceeds from selling Wendy Citrasa and Biotek are expected to reach between Rp 40 billion (US$4.08 million) and Rp 50 billion, Sierad director Awi Tantra said, as quoted by Antara on Tuesday.

The sale process of Wendy and Biotek are scheduled to start early next year. The two companies have long recorded losses.

Sierad is still waiting for an approval from Wendy's International, as the principal of the chain.

"Aside from the approval, the new owner should also be approved by Wendy's International," Awi said.

The plan to sell the Sierad's non-core subsidiaries was made after it booked a net loss of Rp 33.8 billion during the first nine months of this year.

The company has recently laid off 1,500 employees to increase its operational efficiency. -- JP