January 16, 2008

Indonesia's Malindo to raise US$33.3 million for acquisitions and feed plant

Indonesia's publicly listed animal feed producer PT Malindo Feedmill intends to issue bonds worth 300 billion rupiahs (US$33.3 million)  in March to raise funds for the building of an animal feed plant and acquisitions of poultry farms.

CIMB-GK Securities has been named by Malindo to be the bonds' underwriter. The bonds will mature in 2013, according to company commissioner Tan Lai Kai.

Plans to acquire 99.69 percent of PT Leong Ayamsatu Primadonna from Emerging Success Pte. Ltd have been approved by  shareholders. The acquisition will cost RP145 billion (US$15.4 million), which will be bank-loaned.

The company has the capacity to produce 6 million broilers and 62 million  day-old-chicks a year through 20 farms in Subang, Jakarta and Medan.

The company, which has targeted a 10-percent growth in revenue this year, also plans to invest RP100 billion (US$10.6 million) into the construction of an animal feed factory which will have a capacity of 300,000 tonnes a year in Cikande, Banten.