China Minzhong processes vegetables across six sites in China

China Minzhong processes vegetables across six sites in China

Noodle maker Indofood has said its bid to 100% of Chinese vegetable processor China Minzhong has become "unconditional" after it secured over half the business.

The Indonesian group increased its stake in China Minzhong from 29% to 33% earlier this week, triggering a mandatory offer for the rest of the business. That share purchase valued the Chinese firm at S$734m.

Yesterday (4 September), Indofood said it had snapped up more shares, taking its stake in the group to over 50%.

Indofood president director and CEO Anthoni Salim said China Minzhong "provides a strategic fit to our business development". He added: "We could leverage on their business model, technology and expertise to strengthen our supply chain and expand our product portfolios. We believe that this strategic acquisition will be mutually beneficial to both Indofood and China Minzhong."

The company argues China Minzhong can help introduce "industrialised farming" in Indonesia, while the two sides could look at similar ventures in other Asia markets. Indofood says it could use its distribution network in Indonesia to benefit China Minzhong's products.

Last week, China Minzhong was accused of fabricating sales figures by US research firm Glaucus Research, allegations that hit the company's shares. Minzhong dismissed the claims as "reckless opinions and inferences drawn by Glaucus without due regard as to the accuracy of such statements".

Indofood has said it is "satisfied" with China Minzhong's "rebuttals of the allegations".

It added: "It is clear that the intention of the recent allegations is to benefit from the decline in CMFC's share price as the issuer of the malicious report has stated clearly that they maintain a short-sell in CMFC."