Corporate News Update: Tiga Pilar Sejahtera & Indonesia Eximbank
Indonesian food company Tiga Pilar Sejahtera, a market leader in the country’s dry vermicelli and dry noodles segments, considers to acquire two food companies in Malaysia and Vietnam in a move to expand business beyond the Indonesian borders. Sjambiri Lioe, Finance Director at Tiga Pilar Sejahtera, said that the company (which is listed under ticker symbol AISA) has set aside a total of USD $80 million for this acquisition. He refrained from mentioning the names of the targeted Asian companies.
Tiga Pilar Sejahtera is currently negotiating with the Vietnamese company (which produces snacks such as soft cakes and candies) to obtain a 90 percent stake. Regarding the Malaysian company, Tiga Pilar is still in the early stage of assessment. The possible USD $80 million worth of investments imply that Tiga Pilar’s capital spending in 2015 is set to rise to USD $150 million (from an initial budgeted USD $70 million).
Earlier it had been reported that Tiga Pilar Sejahtera seeks to establish a joint venture with a foreign firm to enter the light beverage products industry of Indonesia. This joint venture is expected to materialize in 2015.
Tiga Pilar Sejahtera targets a 49 percent rise in revenue this year to IDR 7.38 trillion (USD $586 million) from an estimated IDR 4.95 trillion in 2014. In 2014, shares of Tiga Pilar Sejahtera rose 46.5 percent.
Stock Quote Tiga Pilar Sejahtera - AISA:
Bond Issuance Indonesia Eximbank
Indonesia’s export financing agency Indonesia Eximbank aims to raise IDR 4 trillion (USD $317 million) in the first semester of 2015 through the issuance of bonds in a move to obtain funds for further support of its financing activities (for export purposes). The state-owned company seeks total funds of IDR 8 trillion by the end of 2015. Last year, the company issued a total of IDR 1.5 trillion (USD $119 million) in bonds which were listed on the Indonesia Stock Exchange for trading on the secondary markets.
Indonesia Eximbank is an agency that was launched by the Indonesian government in 2009 and constitutes the country’s first full-fledged credit agency for the finance of foreign trade (similar to Ex-Im Bank in the USA), especially for medium and small sized companies that cannot put up security for loans but also for a large state-owned construction company such as Wijaya Karya that needs funds for overseas development (building projects in Myanmar). As such, it differs from the conventional or commercial banks that are active in Indonesia.
The company targets to book total outstanding financing of between IDR 62 trillion and IDR 65 trillion in 2015, up from IDR 50 trillion last year. In 2014, 58 percent of Indonesia Eximbank’s loans were US dollar-denominated, the remainder IDR rupiah-denominated. The company had total assets of IDR 60 trillion and total capital of IDR 10 trillion at the end of 2014.
Ngalim Sawega, Executive Director at Indonesia Eximbank, said that the government had injected a total of IDR 1 trillion in the company at end-2014 for business expansion. He added that the Indonesian government may inject more funds this year.
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