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||4 September 2009
Indonesia’s food giant to spin off noodle unit
The world’s largest instant noodle producer, PT Indofood Sukses Makmur, will divest its noodle and food seasoning divisions into a separate company, pending approval from the authorities, reported the Jakarta Post.
First Pacific Co, which controls 51 percent of Indofood, said in a statement to the Hong Kong stock exchange on Thursday that the assets of the two divisions, including employees and machinery, would be transferred to a new unit that will be 100 percent owned by Indofood.
Indofood director Franciscus Welirang told the daily that the transfer of assets was aimed at creating a more efficient performance for the company.
“We want it [Indofood] to be more efficient and effective [after the spin off],” Franciscus said.
He added that the company was in the process of requesting permission from the authorities for the establishment of the new company, which will take over the two divisions currently under the management of Indofood’s Consumer Branded Products (CBP) unit.
CBP, which produces noodles, food seasonings, snack food and nutritious & special foods, is Indofood’s most profitable division, contributing 43 percent to the company’s total net sales of 18.22 trillion rupiah ($1.8 billion) in the first half of this year.
Indofood is expecting the whole process can be completed by September 30, according to a document from the company.
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