Indofood is to sell its 82.88% stake in Singapore-listed vegetable processor China Minzhong Food Corp. to Marvellous Glory Holdings – an investment vehicle indirectly owned by the Indonesia-based food group’s president Anthoni Salim – for SGD651.9m (US$484.1m).

Under the terms of the deal, confirmed in a pre-conditional offer announcement in Singapore yesterday (6 September), Marvellous will also buy out China Minzhong’s minority shareholders with the intention of privatising the company.

According to the announcement, Marvellous will pay for Indofood’s entire China Minzhong stake with SGD416.4m in cash and the rest in bonds. Indofood will exchange the bonds for 29.94% of China Minzhong. 

Salim, Indofood’s president director and CEO, indirectly owns and controls nearly 93% of Marvellous.

Last month, Indofood reported rising half-year sales and profits, shrugging off the impact El Nino has had on its palm oil production. The company posted a 4.4% increase in consolidated net sales to IDR34.08trn ($2.59bn) for the first six months of the year.