Cargill acquires majority stake in Indonesian company

Cargill said 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 ($0.389) 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 at the same price per share.

The 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.

Upon close of the transactions, Sorini will become a subsidiary of Cargill.

Indonesia-based Sorini is one of the world's producers and suppliers of sorbitol.

The company operates seven manufacturing facilities located in Indonesia's East Java and Lampung provinces.

Its 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.

"This acquisition will be an anchor point for future growth of our food ingredients business in Asia, particularly in Indonesia and South East Asia," Bram Klaeijsen, president and regional director, Cargill Asia-Pacific.

"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."