JAKARTA. The Salim Group's consumer goods issuer PT Indofood Sukses Makmur Tbk (INDF) has returned the shares of Indofood Agri Resources Ltd or IndoAgri to shareholders after the former failed to reach its target in the tender offer of IndoAgri shares, completed on Tuesday (25/6).
Indofood Corporate Secretary Victor Suhendra said the company, represented by the Singapore branch of CIMB Bank Bhd, had made an announcement in Singapore that until the end of the offer period the requirements had failed to be fulfilled, rendering the tender offer invalid.
"IFAR shares owned by shareholders who received offers during the tender offer period will be returned," said Mr Suhendra in an information disclosure at the Indonesia Stock Exchange (IDX), Wednesday (26/6).
A tender offer is usually done by a majority shareholder to offer the purchase of shares owned by other investors, including public investors, at a premium price.
Mr Suhendra added that the failed tender offer had no impact on the issuer's operational and legal activities as well as its financial conditions and operational sustainability. INDF's stock price has stagnated at Rp 6,975 per share on Wednesday (26/6), despite having reached Rp 7,025 per share on the opening of the day's trading session.
The conditional cash offering period of the shares of IndoAgri, an Indofood subsidiary headquartered in Singapore, ended on May 25, 2019. Based on Indofood's financial statements as of March 2019, the company owns a 62.8% stake in IndoAgri.
In an information disclosure on May 23, Indofood's management said that at 17:00 Singapore time there were 102,820,633 IndoAgri shares, 7.37% of its placed and paid-up capital, offered during the tender offer period. The amount eventually failed to be fulfilled.
In an information disclosure on May 31, 2019, the company through CIMB revised the offering price to S$ 0.33 after adjustments to IndoAgri's 2018 fiscal year dividends.
Previously the offering price had been S$ 0.28, after adjustments to IndoAgri's 2018 fiscal year dividends. (AM/MS)