Cargill snaps up Indonesian starch and sorbitol player
The acquisition of 85.01 per cent of Sorini’s ordinary shares in two separate deals will bring it new manufacturing and supply capabilities in starch and starch derivatives, sorbitol, maltitol, dextrose monohydrate, maltose and maltodextrine.
Sorbitol is used in a number of consumer goods including toothpastes, mouthwashes as well as soaps and creams and will add to the hydrocolloids, lecithins, and starches and derivatives already offered by Cargill.
The deal will also expand the food ingredients business in Asia, and president and regional director of Cargill Asia Pacific Bram Klaeijsen, said: “This acquisition will be an anchor point for future growth of our food ingredients business in Asia, particularly in Indonesia and South East Asia.”
Mandatory tender
The two deals Cargill has struck, with PT AKR Corporindo and UOB Kay Hian Pte Ltd, have a combined value of IDR 2720bn (around US$300m). The former, subject to shareholder agreement, will see it acquire all of AKR’s shares in Sorini for IDR 3500 a share, leaving AKR to focus on energy, chemical distribution and infrastructure interest. The latter is said to be a “block” of shares.
The two deals are expected to close at the same time and Sorini will become a Cargill subsidiary. After that Cargill will have to make a tender offer to acquire the remaining shares of Sorini, as required under Indonesian law.
Klaeijsen said the acquisition will open up new synergies with Cargill’s existing business, with customers to benefit from “new product offerings, enhanced technology and application capabilities, as well as the supply chain and risk management capabilities we bring to the business.”
