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View all search resultsUnilever to sell SariWangi tea stake in $89m deal
The multinational company is divesting its stake to PT Savoria Kreasi Rasa, an affiliate of local conglomerate Djarum Group.
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A picture taken on June 5, 2015 shows the logo of Unilever at the headquarters in Rotterdam. (AFP/John Thys)
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ublicly listed consumer goods giant PT Unilever Indonesia has announced a deal to divest its teabag business in Indonesia under the SariWangi brand to PT Savoria Kreasi Rasa, an affiliate of local conglomerate Djarum Group.
The two companies signed a business transfer agreement (BTA) on Tuesday for a transaction valued at Rp 1.5 trillion (US$89.45 million), representing 45 percent of Unilever’s equity in the brand based on the company’s financial statements as of September.
Unilever said in a statement published on Wednesday that the move was part of its efforts to optimize its portfolio, in line with the company’s focus on fewer, larger-scale categories and sustainable growth opportunities to support long-term value creation.
“We believe this transaction will strengthen SariWangi’s business position for its next phase of growth. This move also sharpens Unilever Indonesia’s focus on key segments with higher growth potential and reaffirms our commitment to creating sustainable value for shareholders,” Unilever president director Benjie Yap said in the statement.
The company’s management also stated that the transaction, which is set to be completed on March 2, “will not have any material impact on the company’s operational activities, legal standing or business continuity”.
Read also: Unilever Indonesia’s profit down 62% as sales slump
The transaction is expected to enable the company to “realize the value of its investment in the tea business in Indonesia and return that value to shareholders in the short-term, while focusing on its remaining core businesses to enhance long-term shareholder value”.
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