The Jakarta Post
Processed food company Indofood CBP Sukses Makmur (ICBP) is planning to acquire instant noodle manufacturer Pinehill Company Limited, which supplies Indomie to the Middle East, Africa and Serbia.
ICBP corporate secretary Gideon A. Putro said on Wednesday that the company responded to its British Virgin Island affiliates, Pinehill Corpora Limited and Steele Lake Limited, on an offer to acquire Pinehill Company Limited (Pinehill Group).
He said Pinehill Group’s core business was manufacturing instant noodles in Saudi Arabia, Nigeria, Turkey, Egypt, Kenya, Morocco and Serbia under the “Indomie” brand licensed by ICBP’s parent company, food manufacturer Indofood Sukses Makmur
“We will then conduct a due diligence process on Pinehill Group before deciding to take on the acquisition offer,” said Gideon in the statement, adding that the company would make an announcement should it decide to take the offer.
Following the development, ICBP’s and Indofood’s share prices plummeted on Wednesday while foreign investors sold off their stake in the companies.
ICBP’s share price was down by 6.32 percent to Rp 10,750 (78 US cents) per share, with foreign investors selling off Rp 58.91 billion of their share in the company when the session ended on the day.
In the meantime, Indofood’s share price, codenamed INDF, was depressed even deeper than its subsidiary as it concluded the trade on Wednesday down by 6.51 percent to Rp 7,175 per share. Foreign investors sold off Rp 26.8 billion of their INDF shares during the day’s session.
Although both shares regained strength on Thursday, foreign investors continued to sell their shares in the company. As of 10:40 a.m., ICBP recorded Rp 57.59 billion in net foreign sell while foreign investors sold Rp 5.49 billion of Indofood shares.