JAKARTA - PT Indofood CBP Sukses Makmur Tbk (ICBP) took over all shares of PT Indofood Fritolay Makmur (IFL), a company owned by Fritolay Netherlands Holding B.V., an affiliated company of PepsiCo. Inc.
Gideon A. Putro, Corporate Secretary of ICBP, said that the total shares taken over by the company were 49% of the total IFL shares. The transaction value of this shares takeover was around IDR 494 billion and would be paid using the company's internal cash.
"By carrying out the transaction, IFL will terminate the license agreement with PepsiCo, after IFL has completed all preparations for the cessation of production and products sales under PepsiCo brand," said Putro through an information disclosure on Indonesia Stock Exchange.
After this transaction, neither Fritolay nor PepsiCo and their affiliates may produce or distribute any snack products in Indonesia. This prohibition is valid for 3 years from the transitional period of cooperation termination.
After the takeover of shares from Fritolay Netherlands Holding, ICBP's share ownership in IFL increased to 99.99%. Previously, the company only owned 51% of IFL’s shares. (KR/VA)