PT Indofood Sukses Makmur plans to spin off its noodle and food ingredient businesses into a separate, wholly-owned subsidiary.
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The new unit will be called PT Indofood CBP Sukses Makmur. Indonesian group Indofood will continue to operate its flour mills under PT Bogasari Flour Mills.
First Pacific, the investment fund that owns a controlling 50.1% stake in Indofood, said that the spin off would take effect on 30 September.
Indofood will grant the newly-formed company trademark rights under a long-term contract in return for royalties, which will be determined at a later date.
In a statement to the Hong Kong stock exchange, First Pacific said the segregation of the noodle business as a separate legal entity would provide further scope for future development.
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By GlobalDataThe move is also expected to improve efficiency on an organisational, operational, administrative and financial business and provide a “wider base of funds”.
