Indonesia: Indofood CBP to acquire Pinehill Group for $3 billion

Indofood CBP, an Indonesian-based noodle company, has announced its plan to acquire Pinehill Group, an instant noodle producer for $3 billion.

With a production of 10 billion packs in its 12 facilities, Pinehill Group sells instant noodles to countries like Serbia, Ghana, Morocco, Egypt, Turkey, Saudi Arabia, Kenya, and Nigeria.

According to sources, Indofood CBP expects “to gain a strategic position in Pinehill’s markets, where halal products are the primary choice”.

Under the terms of the deal, Indofood CBP will pay $1.53 billion to Pinehill Corpora Ltd. for 51% stake and the remaining 49% stake for $1.47 billion to Steele Lake Ltd., with the sale being funded with internal resources and third-party bank borrowing.

Sources: Bloomberg