Cargill acquires majority stake in PT Sorini Agro Asia Corporindo Tbk Cargill announced that it has entered into an agreement to purchase all of the ordinary shares of PT Sorini Agro Asia Corporindo Tbk ("Sorini") held by the majority shareholder PT AKR Corporindo Tbk
GardenNews.biz - Jan 05,2011 - Cargill acquires majority stake in PT Sorini Agro Asia Corporindo Tbk
Jakarta, December 2010 – Cargill announced that it has entered into an agreement to purchase all of the ordinary shares of PT Sorini Agro Asia Corporindo Tbk ("Sorini") held by the majority shareholder PT AKR Corporindo Tbk ("AKR") at a price of IDR 3,500 per share. The transaction is subject to approval of AKR's shareholders.
In a separate transaction, Cargill also is acquiring a block of ordinary shares of Sorini from UOB Kay Hian Pte Ltd at the same price per share. This transaction will complete at the same time as the purchase from AKR.
Both share purchase transactions combined will result in Cargill owning 85.01% of the ordinary shares of Sorini, at a combined purchase price of IDR 2,720 billion (approximately USD 300 million). Upon close of the transactions, Sorini will become a subsidiary of Cargill.
Indonesia-based Sorini is one of the world's leading producers and suppliers of sorbitol. The company 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.
"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 we 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," said Klaeijsen. "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."
People will be a key factor in achieving business success. "We greatly value Sorini's talent," said Klaeijsen. "The team has demonstrated strong industry know-how, commitment to the future growth of the industry and leadership capabilities. We are confident that together, we can better serve customers and successfully drive profitable growth."
"Overall, Sorini is an excellent fit with our existing operations, product portfolio and capabilities," he said.
Haryanto Adikoesoemo, president director of PT AKR Corporindo Tbk. 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 beginnings to a world class company will continue under the stewardship of Cargill. Together with Cargill, Sorini can reach higher heights in the sorbitol, starch and starch sweetener business, and employees can enjoy further growth with the company," he said.