Dec 15, 2010

Cargill to hold tender offer for Sorini stake

Cargill Inc shall conduct a mandatory tender offer for the remaining shares of PT Sorini Agro Asia Corporindo Tbk (SOBI) following the completion of majority stake's take over.
In a press statement obtained today, UBS is the sole financial advisor to PT AKR Corporindo Tbk (AKRA) in this transaction.
AKR Corporindo today announced that it has entered into an agreement with Cargill to sell all of the ordinary shares of Sorini held by AKR amounting to 629,17 million shares or 68.82% of the issued share capital of Sorini at IDR3,500 per share.
The transaction is subject to approval of AKR shareholders in a general meeting of shareholders of AKR which will be conducted in January 2011
Sorini is one of the world’s leading producers and suppliers of sorbitol and operates seven manufacturing facilities located in Indonesia’s East Java and Lampung provinces.
Sorini’s product range comprises starch and starch derivative products including Liquid and Powder Sorbitol, Maltitol, Dextrose Monohydrate, Maltose, and Maltodextrine, all used in the production of consumer goods such as food and beverages, cosmetics and personal care, and pharmaceuticals.
Haryanto Adikoesoemo, President Director of AKR Corporindo said AKR’s focus is now re-oriented towards energy, chemical distribution, and logistics infrastructure business.  "This divestment will add value to our shareholders by enabling to reinvest the proceeds of the divestment in these focus businesses. The journey of Sorini from its humble beginnings to a world class company will continue under the stewardship of Cargill,” he said.
Sorini is expected to reach higher heights in the Sorbitol, starch and starch sweetener business, and employees can enjoy further growth with the company.”
“Sorini is a business with an attractive asset footprint, a solid customer base, strong leadership and a broad product portfolio,” said Bram Klaeijsen, President and Regional Director, Cargill Asia-Pacific.
“This acquisition will be an anchor point for future growth of our food ingredients business in Asia, particularly in Indonesia and South East Asia.”
Through this acquisition, Cargill will gain manufacturing and supply capabilities in Indonesia, which will enable us to better serve customers in Indonesia as well as in other Asian and global export markets.
“Customers also will benefit from our expertise and leading position in the global starches and sweeteners industry including new product offerings, enhanced technology and application capabilities, as well as the supply chain and risk management capabilities we bring to the business.” 

Disclosure: No position at the stock mentioned above.  

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