Apr 20, 2011

Uniflora delays Davomas takeover deal

The takeover of majority stake in cocoa powder PT Davomas Abadi Tbk (DAVO) by PT Uniflora Prima is delayed.
In an official statement submitted to Indonesia Stock Exchange (IDX) today, the delay is because of Uniflora inability to raise financing in the global debt market because of unfavorable situation. 
Uniflora aims to seek debt to finance Davomas takeover. "Despite the delay, the deal remains on. However, we are striving to seek other financing," said Uniflora President Director Johanas Herkiamto said.
 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 Davomas at consideration price of US$77 million or Rp108 per share.
Johanas Herkiamto 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 installed 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. 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.

Disclosure: No position at the stock mentioned above.  

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