Cargill Acquires Majority Stake in PT Sorini Agro Asia Corporindo Tbk
JAKARTA, Indonesia, Dec. 15, 2010 /PRNewswire/ — Cargill announced today 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.
“On behalf of AKR, I thank the management and employees of Sorini for their dedication. We wish them well for their future with Cargill as the new majority owner of Sorini,” he said.
Following completion of the transaction with AKR, Cargill will make a mandatory tender offer to acquire the remaining shares of Sorini as mandated by Indonesian law.
Credit Suisse is the financial advisor to Cargill in relation to this acquisition.
Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, the privately held company employs 131,000 people in 66 countries. Cargill helps customers succeed through collaboration and innovation, and is committed to sharing its global knowledge and experience to help meet economic, environmental and social challenges wherever it does business. For more information, visit http://www.cargill.com
About Cargill in Indonesia
Cargill began doing business in Indonesia in 1974 by establishing a feed mill in Bogor, West Java. Today, Cargill — which is headquartered in Jakarta — has over 8,000 employees and offices, manufacturing plants and facilities throughout the country. Business activities comprise animal nutrition, cocoa, grain and oilseeds, palm oil, and sugar. Cargill is a responsible corporate citizen of Indonesia, and its local programs foster responsible and sustainable development, help protect the environment and nourish the people and possibilities that reside in local communities. For more information visit www.cargill.co.id
About PT AKR Corporindo Tbk
PT AKR Corporindo Tbk (AKR) was formally established in Surabaya, East Java, in 1977 and was listed on the Indonesian Stock Exchange in 1994 (formerly the Jakarta and Surabaya Stock Exchanges). AKR is the largest private distributor of basic chemicals and non-subsidized petroleum products in Indonesia, with extensive logistics and supply network, covering 15 sea and river ports in Indonesia and 5 river ports in China. AKR is also the first private company in Indonesia allowed by the Government of Indonesia to distribute subsidised fuels. AKR also provides logistics services to its customers at its tank terminals, port handling facilities, truck fleets and river ports handling bulk commodities and containers. AKR, via its subsidiary PT Sorini Agro Asia Corporindo Tbk (Sorini) in Indonesia, and Khalista Liuzhou Chemical Industries Ltd., in China is one of the largest producers of Sorbitol and Starch Sweeteners in Asia Pacific. The Company is also currently exploring opportunities in energy related sectors, and also manufactures wood adhesives and paper chemicals. For more information, visit http://www.akr.co.id/
About PT Sorini Agro Asia Corporindo Tbk
PT Sorini Agro Asia Corporindo Tbk (Sorini) was founded in 1983, and in 1992 became a publicly listed company on the Indonesian Stock Exchange (formerly the Jakarta and Surabaya Stock Exchanges). Today, Sorini is one of the leading producers of Sorbitol worldwide. Sorini is engaged in the production of Starch and Starch Sweetener products including Sorbitol Syrup and Powder, Maltitol, Dextrose Monohydrate, Maltose syrup, and Maltodextrine. These products form the raw material in the production of consumer goods industries ranging from food and beverage to cosmetics and pharmaceuticals. Sorini supplies its products to multinational customers in over 70 countries and is currently increasing its sales into the fast growing Indonesian market. Currently, Sorini and its subsidiaries operate two Starch Sweetener factories and five Starch plants across the East Java and Lampung provinces in Indonesia. For more information, visit www.sorini.co.id