Cargill to acquire major stake in sorbitol supplier
December 15, 2010
by Eric Schroeder
JAKARTA, INDONESIA — Cargill has entered an agreement to acquire a majority stake in PT Sorini Agro Asia Corporindo Tbk, one of the world’s largest producers and suppliers of sorbitol.
Cargill is set to acquire all of the ordinary shares of PT Sorini Agro Asia Corporindo Tbk from PT AKR Corporindo Tbk for approximately 3,500 Indonesia Rupiahs per share (38.8c) and a block of ordinary shares in Sorini from UOB Kay Hian Pte Ltd. at the same price per share. Following the purchase, valued at approximately 2,720 billion Indonesia Rupiahs ($301 million), Cargill will own about 85.01% of the ordinary shares of Sorini.
Sorini operates seven manufacturing facilities located in Indonesia’s East Java and Lampung provinces. The company’s product range includes starch and starch derivative products, including liquid and powder sorbitol, maltitol, dextrose monohydrate, maltose, and maltodextrine, all of which are used in the production of food and beverages.
“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 of 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. 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.”