Indofood buys 15 pct stake in China agriculture firm
PT Indofood Sukses Makmur Tbk, the world’s biggest instant noodle maker, is buying 14.9 percent stake in China-based fresh vegetable processor China Minzhong Food Corporation Limited, it said in a filing to the Indonesian stock exchange on Monday.
Indofood will buy 98 million shares of Singapore-listed Minzhong Food for S$89.67 million ($72.45 million) through right issuance. The share price transaction was at 9.9 percent discount to Thursday’s closing price.
“Looking at the company more detail, MINZ is a prominent player in the vegetable process industry in China integrated from up to downstream. MINZ has a various range of product portfolio from processed to fresh vegetables distributed for both domestic and export,” Jakarta-based Mandiri Sekuritas analyst Octavius Prakarsa said in a note on Monday.
“Yet, the acquisition may lift market confidence in the INDF outlook as such acquisition shows INDF’s continuing commitment in its growth onward.”
Shares of the food firm were down 1.49 percent at 6,600 rupiah. The broader Jakarta Composite Index was up 0.13 percent.
1051 (0351 GMT)
($1 = 1.2376 Singapore dollars) (Reporting by Andjarsari Paramaditha; Editing by Jijo Jacob)
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