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Indonesian magnate Anthoni Salim narrowly won shareholder backing on Friday for a US$ 3 billion takeover transaction between companies he controls, getting rid of criticism about the deal’s evaluation and questions about corporate governance.
FILE IMAGE: Visitors stroll past the booth of Indonesian food huge Pt. Indofood Sukses Makmur at a trade exhibit in Jakarta, Indonesia, October 12,2016 REUTERS/Iqro Rinaldi/File Image
( Updated: )
HONG KONG: Indonesian magnate Anthoni Salim directly won shareholder support on Friday for a US$ 3 billion takeover transaction in between companies he manages, getting rid of criticism about the offer’s evaluation and concerns about business governance.
First Pacific Co Ltd, Salim’s holding business, said in a filing to the Hong Kong stock exchange that a takeover by its subsidiary Indofood CBP (ICBP) of Pinehill Company Ltd was approved by its independent investors at an unique conference where 52 percent of votes were cast in favour.
ICBP is best known for the Indomie noodle brand name and Pinehill is among Indomie’s suppliers and manufacturers, in the Middle East and Africa.
ICBP shares dropped 3.1 percent on Friday, compared to a 0.4 percent fall in the local standard. Pacific shares traded flat.
Citi analyst Vivi Lie said in a note that while Friday’s vote might put “slight negative pressure” on ICBP shares, the downside was limited as the unfavorable belief on the deal was already priced into appraisals.
Salim is Indonesia’s sixth-richest man with a net worth of US$ 5.5 billion according to Forbes. He and a relative own an integrated 57.3 percent of a company which owns 51 per cent of Pinehill and Salim likewise holds 44.3 per cent of First Pacific’s shares, according to corporate filings. ICBP’s 2019 annual report states Salim controls First Pacific.
The transaction, which required an easy bulk on Friday to pass, likewise requires approval of ICBP shareholders to continue.
Some First Pacific shareholders had actually earlier raised issues about the US$ 3 billion cost ICBP was paying for Pinehill, saying it was too high.
While Salim and his partners were not eligible to vote at Friday’s meeting under Hong Kong’s related-party rules as they are ruled out independent investors, they can vote under Indonesian rules in ICBP’s extraordinary general conference (EGM). Some shareholders have actually said that raised governance concerns.
Those in favour of the transaction have stated the takeover could boost ICBP’s monetary efficiency considerably.
ICBP’s EGM, which had actually been arranged for July 15, was held off due to the fact that Indonesia’s monetary regulator stated it needed to offer investors extra info, according to announcements in regional papers.
( Reporting by Alun John; Editing by Muralikumar Anantharaman)
CNA.
