indofood-buys-milk-processor

Indofood buys milk processor

Indonesia's Indofood rebuilds its pre-crisis empire with the purchase of Drayton which owns 69% of milk producer Indolakto.

By Rupert Walker

September 23, 2008

PT Indofood Sukses Makmur Indofood, the worldÆs largest instant noodle producer, yesterday agreed to buy Drayton, owner of IndonesiaÆs leading milk processor Indolakto, for $350 million.

Indofood, which is part of the Salim Group but 50.1%-owned by Hong Kong investment company First Pacific, signed a memorandum of understanding with Drayton back in August to fully take control of its operations, and expects to complete the purchase by December. It has signed a conditional sale-and-purchase agreement with Pastilla Investment to buy 100% of Drayton, which owns 68.57% of Indolakto.

Jakarta-listed Indofood's shares fell by 50 rupiah, or 2.3%, to Rp2,125 during yesterday's trading session.

The Salim Group was a shareholder in Indolakto before the 1997...

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