PT Japfa Comfeed Indonesia Tbk (JPFA) is aiming to merger with three companies namely PT Multibreeder Adirama Indonesia Tbk (MBAI), PT Hidon, and PT Multiphala Adiputra. Multibreeder is a subsidiary of Japfa with 73.39% stake, while Hidon and Multiphala are 100% stakes owned by Multibreeder Indonesia.
In a merger prospectus published today, Multibreeder, Hidon, and Multiphala will be merged into Japfa Comfeed.
Multibreeder is day old chick producer, as well as Hidon and Multiphala Adiputra. According to the prospectus, the merger is intended to strengthen Japfa's capacity to produce poultry feed with business support of day old chick producers.
Japfa will issue new shares with nominal price of Rp1,000 to share holders of Multibreeder Adirama. Each holder of 1 share in Multibreeder may convert it into 3,025 shares of A series in Japfa Comfeed. Book value of Japfa last year was Rp1,602 a share, while Multibreeder's book was valued at Rp9,497.
Disclosure: No position at the stock mentioned above.
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