SMC buys into Dharmala

JAKARTA (JP): Shareholders of publicly listed Dharmala Agrifood yesterday approved management's plan to sell a 49 percent share in its subsidiary PT Artacitra Terpadu Feedmill to San Miguel Foods International (SMFI).

Dharmala Agrifood director Purnawan Eko Andoko said SMFI, a subsidiary of the Philippines-based San Miguel Corp, would buy about 27,930,000 shares for Rp 1,767 (76 U.S. cents) a share, around Rp 767 higher than their nominal price.

He said Artacitra, the Dharmala group's animal feed and poultry division, would become a joint venture after the sale.

"We will maintain a 51 percent stake in the firm," he said.

The group recently merged its seven animal feed and poultry units into Artacitra.

He said the merger increased Artacitra's assets from Rp 84 billion to Rp 172 billion, and its paid-up capital from Rp 25 billion to Rp 57 billion.

The company's net profit is expected to increase next year because of the merger.

He said the firm would make a Rp 20 billion net profit this year, up 150 percent on last year. (bnt)