Mar 29, 2011

Uniflora Prima buys Davomas at Rp108

PT Uniflora Prima has entered into conditional sale and purchase of shares agreement with five sellers to acquire 51.86% shareholding in cocoa butter and power producer PT Davomas Abadi Tbk (DAVO) at consideration price of US$77 million or Rp108 per share.
Johanas Herkiamto, President Director of Uniflora Prima, in an official statement filed to Indonesia Stock Exchange (IDX) today, said the company will settle the payment after it completes all term and conditions of the CSPA.
By the proposed acquisition, Uniflora is underway to hold a backdoor listing transaction into Indonesian stock market.
Uniflora aims to buy 6.43 billion shares or 51.86% in Davomas from Hassocks Enterprises Limited, Caterpillar Associates Limited, Krigler Holdings Limited, Polar Cap Investments Limited, and Templeton Assets Limited.
The proposed acquisition will improve production capacity of Uniflora and make it a leading cocoa producer in Indonesia.
Davomas's production facilities is located in Tangerang, Banteng, or 20 km of West Jakarta. Davomas has intalled production capacity of 70,000 tons of cocoa butter and 70,000 tons of cocoa powder, consisting of 20,000 tons of deodorized butter cocoa and 20,000 tons of alkalized powder cocoa.
Considering to the regulation, Uniflora Prima is obliged to hold a tender offer for the remaining shares of Davomas. Davomas today jumped 12.68% to Rp80 per share.
Uniflora Prima is one of the biggest cocoa processor in Indonesia. On the land of 16 ha, Uniflora produces cocoa products with the capacity of more than 100,000 tonnes annually.
All the products are exported to many big companies around the world such as Europe and United States. Uniflora also has the latest advanced technology to create the high quality products. Uniflora is maintained by many experts who already have a great experience in commodity industry.
In a press statement today, Moody's Investors Service has today assigned a provisional B2 corporate family rating to Uniflora Prima. At the same time, a provisional B2 senior secured bond rating has been assigned to the proposed senior secured notes issued by Uniflora  Prima International Pte Ltd, an entity wholly-owned and guaranteed by Uniflora. The outlook on both ratings is stable.
This is the first time Moody's has assigned ratings to Uniflora or Uniflora Prima International Pte Ltd. The provisional status of the  ratings will be removed upon completion of the bond issuance and the acquisition of the stake in Davomas(Caa3).
Uniflora plans to acquire majority stake in Davomas, with proceeds from a  mandatory convertible bond of US$77 million, which will be automatically  converted into shares of Uniflora upon issuance of the proposed senior secured notes.
The proceeds from the bond issue will be used to fund expansion at Uniflora, a mandatory tender offer for the rest of Davomas' shares,  with any unutilized amount used for the repayment of a US$33 million
subordinated shareholder loan provided to Davomas for working capital purposes, pursuant to its debt restructuring exercise in 2009, the  full redemption of Davomas' senior secured notes due 2011 and 2014, and  working capital and general corporate purposes.

Disclosure: No position at the stock mentioned above.

Print This Article

1 comment:

pepper said...

Looks like this deal is off, given that Uniflora is postponing the Bond issuance.