KKR & Co. LP, a global investment company listed in New York Stock Exchange, has signed an agreement with Japfa Ltd, the holding company of PT Japfa Comfeed Indonesia Tbk (JPFA), to buy 10.44% stake of Japfa worth US $ 81.2 million. Japfa Ltd. benefits US$ 21.2 million in capital gain from the sale of shares to KKR.
Japfa Comfeed will issue 750 million new shares to KKR through a private placement worth US$ 52.9 million. Along with the private placement, Japfa Ltd will sell 441.7 million shares in Japfa Comfeed to KKR valued at US$ 28.3 million. In a press release, Tan Yong Nang, CEO of Japfa Ltd, said Japfa Comfeed can learn from the experience of the KKR in the agricultural and food sector as well as its efforts to promote safe and healthy food.
KKR considers Indonesia to have very good prospects since it has a dynamic economy, positive demographic trends, and an increase in GDP per capita. KKR is committed to invest and provide capital solutions for business partners in Indonesia, one of which is Japfa. KKR has been investing in Indonesia since 2013, among others is Mandala Energy, an oil and gas exploration company in Southeast Asia and PT Tiga Pilar Sejahtera Food Tbk (AISA), a listed food business. (*)
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