SINGAPORE (Yosefardi) – SGX-listed JB Foods targets to complete the acquisition over 80% stake in PT JeBe Koko, a cocoa bean processing facility in Gresik, Indonesia, in the second quarter of this year. The aggregated purchase consideration for the acquisition is approximately US$18.4 million.
This acquisition will enhance its processing capability and improve its cost-competitiveness. This will allow the Group to save on the Indonesian export tax on raw cocoa beans.
In conjunction with this proposed acquisition, the Group also raised a total of S$28.8 million in cash through a 1-for-2 rights issue at a subscription price of S$0.12.
To strengthen its sales network and widen its customer base, the Group has set up sales offices in Indonesia and the USA.
With this acquisition, the Group will have a combined capacity of 145,000 metric tons cocoa bean equivalent per year to cater to the Group’s future growth in Asia and the rest of the world.
The aggregated purchase consideration for the acquisition is approximately US$18.4 million
Established since the 1980s, JB Foods is one of the major cocoa ingredient producers in Malaysia with a production capacity of 85,000 tons of cocoa bean equivalent per year.