JAKARTA. PT Indofood Sukses Makmur Tbk (INDF) plans to conduct a tender offer on the shares of its subsidiary, Indofood Agri Resources Ltd (IFAR) which is listed on the Singapore stock exchange. This action is also referred to as conditional cash tender offer, and it is a part of INDF's plan to delist Indofood Agri from the Singapore stock exchange.
INDF, through the Singapore branch of CIMB Bank Berhad, has announced conditional cash offers to buy all of IFAR's shares. The announcement was made on 10 April 2019.
The ownership of INDF in IFAR is around 74.34%, and it is listed on the Singapore Exchange Securities Trading Limited. The offer made by INDF is for 25.66% of IFAR shares which will later make INDF owns 100% of IFAR.
For information, the company has received an irrevocable written commitment from First Pacific Investments Limited (FPIL) and First Pacific Investment (BVI) which jointly own 0.14% shares of IFAR which stated that they won't sell IFAR shares that they have. Both entities have the same controlling party as INDF.
Victor Suhendra, Secretary of INDF, in his official statement, said that the offered price for IFAR shares was US$ 0.28 per share. The funds needed for the tender offer will be obtained from bank loans
Furthermore, the purpose of this action is to delist and privatize IFAR, in order to provide flexibility for INDF and IFAR management in carrying out strategic initiatives and also reducing the number of listed companies in INDF's corporate structure.
"In the event that a free float requirement is not met, the company does not intend to maintain IFAR's status as a public company and does not intend to take any action to fulfill the free float requirement. In this case the company intends to do the delisting of IFAR from the SGX-ST, "Victor wrote in his official statement on Thursday (11/4).
A Kontan source said that for this corporate action, at least INDF had to provide funds of Rp. 1 trillion. (AM/AR)