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News Admin
 
Date
 20/07/2006
News Provider
 Mahamad Rodzi Abdul Ghani
News Source
 
Headline
 Indofood proposes merger of its palm oil units

17/7/06 JAKARTA (Reuters) - The world's largest instant noodle maker, PT Indofood Sukses Makmur Tbk , plans to merge its five units in the palm oil industry business into a sixth unit to increase efficiency, one of the subsidiaries involved in the merger said on Monday.

Indofood will merge the five units with PT Salim Ivomas Pratama, which will become the surviving company in this merger, Salim Ivomas said in a statement, without giving financial details.

"They (companies) are supporting each other in its business and a merger will become an alternative to achieve a more efficient, effective and productive management," Salim Ivomas said.

Indofood, a company with a market capitalisation of $950 million, had said it plans to eventually offer a stake in its edible oils and fats business through an initial public offering.

Edible oils and fats contributed around 16 percent of its 18.8 trillion rupiah ($2.05 billion) net sales last year.

Indonesia's Salim family controls Indofood through Hong Kong's First Pacific Ltd. . ($1=9,170 rupiah)

ECONOMICS & INDUSTRY DEVELOPMENT DIVISION
Malaysian Palm Oil Board ( MPOB ) Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, MALAYSIA.
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