USA-based global cigarette and tobacco giant Philip Morris International, which bought HM Sampoerna in 2005, seeks to raise USD $1 billion from this stake sale according to local sources. This would imply that the sale would be one of the largest share sales in Southeast Asia in 2015. Reportedly, Goldman Sachs Group Inc., Credit Suisse Group AG, J.P. Morgan and Mandiri Sekuritas will manage the sale, which is expected to be concluded before the end of the year.

HM Sampoerna controls about 34 percent of Indonesia’s tobacco market with its seven manufacturing facilities: two machine-made kretek production facilities and five handrolled kretek production facilities (kretek cigarettes are the highly popular clove cigarettes that are a trademark of Indonesia). The company produces some of the country’s most famous kretek cigarette brands, such as Sampoerna Hijau, Sampoerna A Mild, and the legendary “King of Kretek” Dji Sam Soe.

Stock Quote HM Sampoerna - HMSP:

For more information on Indonesia’s tobacco industry and government regulations that influence cigarette sales read the following columns:

Smoking in Indonesia: Government’s Mixed Tobacco Control Policies
Indonesian Tobacco Products Subject to Excise Tax Hike in January 2015
Company Profile of HM Sampoerna