Dec 16, 2010

Tiga Pilar proposes Rp1.1 trio take over

Noodle maker PT Tiga Pilar Sejahtera Food Tbk (AISA) has entered into agreement to acquire 12,000 hectares plantation land bank in Sumatra from Wilmar Group, PT Jatim Jaya Perkasa.
To buy the land bank, Tiga Pilar has secured Rp700 billion loan facility with annual interest rate of 6% from foreign bank.
"We will not use internally generated cash for the acquisition. About 70% of the acquisition will be paid using 6-7 year loan facility and the remaining will be paid using convertible bonds," said Tiga Pilar Finance Director Sjambiri Lioe said.
Along with the land bank take over, Tiga Pilar has also acquired rice production facility from Ganda Group, PT Jatisari Sri Rejeki. Adding to that, Tiga Pilar will transfer 14% stake to Jatisari.
"Both acquisitions require Rp800 billion and Rp210 billion respectively," he said. Tiga Pilar plans to issue Rp200 billion convertible bonds next year.

Disclosure: No position at the stock mentioned above.

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