Feed Company Merger in Prospect in Indonesia16 April 2012
INDONESIA - Two producers of animal feed and processed foods, PT Japfa Comfeed Indonesia Tbk (JPFA) and PT Multibreeder Adirama Indonesia Tbk (Mbai), have agreed to merge.
The merger aims to strengthen the business and corporate capital structure, according to Media Indonesia.
The information was disclosed to the Indonesia Stock Exchange on on 12 April, following the signing of a Letter of Intent.
JPFA Director, Herry Wibowo, said that the merger would provide four key benefits for the company: acceleration of operational and business strategies, better financial efficiency, improved streamlining of the corporate structure and avoiding duplication in compliance in capital and stock markets.
The report adds that, according to the 2011 financial statements, Japfa has assets worth 8.26 trillion rupiah (IDR), while Multibreeder has assets of IDR1.52 trillion.
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