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Sari Roti shareholders approve plan for rights issue
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Smells good: An employee of Nippon Indosari Corpindo, the company behind the Sari Roti brand, works at a bread factory at the Jababeka industrial park in Cikarang, West Java. (JP/File)
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T Nippon Indosari Corpindo announced on Friday that shareholders had approved its plan to conduct a right issue in a bid to further expand its business in Indonesia and the Philippines.
Nippon Indosari – listed on IDX under the ticker symbol ‘ROTI’ – will issue 1.15 billion shares, with a nominal price of Rp 20 (0.01 US cent) per share to raise fresh funds.
“All of the funds obtained from the rights issue will be used to build new factories for producing white bread and sweet bread, both in Java and outside, as well as in the Philippines,” the company’s independent director, Alex Chin, said on Friday.
Four to five new factories will be opened in the next five years, which will support its plan to become one of the biggest bread producers in Southeast Asia.
The management refused to share more details on the plan, noting that more detailed information would be made available through the firm’s prospectus.
Sari Roti saw its sales decline to Rp 602.5 billion (US$45 million) in the first quarter of 2017, down 1.3 percent from the corresponding period of last year.
Meanwhile, its net profit nosedived by 67 percent to Rp 27.7 billion. (bbn)
