September 30, 2020

Japfa mulls selling Indonesian dairy unit Greenfields

Japfa Ltd is weighing a sale of its Indonesian dairy unit Greenfields and could seek up to US$500 million from the deal, according to people with knowledge of the matter, The Edge Markets reported.

The Singapore-listed company has started a sale process for PT Greenfields Indonesia and is working with an adviser on the transaction, said the people, who asked to remain anonymous, as the process is private. Japfa has shortlisted several suitors and is inviting them to submit binding bids, they said.

Discussions on the planned sale are ongoing and there is no certainty that Japfa will proceed with the transaction, the people added.

A representative for Japfa responded to queries by directing Bloomberg News on Monday towards a Singapore stock exchange filing.

Greenfields, set up in 1997, produces fresh milk in an integrated farm and dairy processing facility in Indonesia. It has more than 10,000 Holstein and Jersey cows and produces over 43.5 million litres of fresh milk annually.

The finished products are sold to the Indonesian market and exported to Singapore, Malaysia, Hong Kong, the Philippines and other countries in the region.