Indonesia’s Indofood to Buy Instant Noodle Maker Pinehill For $3b
Planning to purchase Pinehill Co., a producer of instant noodles in Africa and the Middle East, PT Indofood CBP Sukses Makmur aims to expand its market, according to Deal Street Asia.
Owned by Indonesian billionaire Anthoni Salim, IndoFood CBP belongs to the conglomerate Indofood Sukses Makmur. On July 15 Indofood CBP plans to hold a shareholders’ meeting to discuss the projected purchase. By paying $1.53 billion to Pinehill Corp. for its 51 percent stake, as well as $1.47 billion to Steele Lake for its 49 percent stake, Indofood CBP will take over key instant noodle markets in Saudi Arabia, Nigeria, Egypt, Turkey, Serbia, Ghana, Morocco, and Kenya.
The company reported that it holds 12 factories capable of producing around 10 billion packs of noodles. Third-party bank borrowings and internal resources of $300 million will fund Indofood CBP’s latest acquisition. Pinehill Co. and Steele Lake will also receive $128.5 million in consolidated group net income until December 2021.
Following the news, Indfofood CBP Sukses Makmur found a growth of 2.6 percent in Jakarta trading as shares grew by as much as 1.2 percent.