Shareholders of Indonesian noodle maker PT Indofood Sukses Makmur have approved the company’s acquisition of plantation company London Sumatra (Lonsum).
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In a statement, the company said the cash consideration of the proposed acquisition and tender offer would be IDR8.4 trillion (US$922m), and will be funded by internal resources and bank borrowings.
Indofood is to acquire Lonsum through its Singapore-based subsidiary Indofood Agri Resources Ltd. The company expects the deal to be completed by the end of the financial year.
Founded 100 years ago, Lonsum is principally engaged in planting and breeding oil palms and milling. In addition to selling oil palm products, the company also deals in other products such as rubber, cocoa, tea and coffee.
Indofood also reported that its sales volumes for the first nine months rose by 6% on average in spite of the recent rises in global wheat prices.
“Although wheat prices rose 26% from last year, demand was not affected,” Indofood chief financial officer Thomas Tjhie was quoted as saying.
Tjhie added that company planned to continue to improve efficiency to offset the impact of rising wheat prices. He also said that the company had so far this year increased noodle prices by IDR100 per pack on average.
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