December 12, 2007

Indonesia's Malindo to pour US$10.74 million for animal feed

PT Malindo Feedmill Tbk has planned to invest IDR100 billion or US$10.74 million in an effort to improve its animal feed businessc.

Malindo Feedmill Corporate Secretary Ong Beng Siong said the company will develop the facility--which has a capacity of 300,000 tonnes per annum - will be built in Cikande due to its proximity to the shipment port.

The company also plan to acquire PT Leong Ayamsatu Primadona to boost the production capacity.

Ong declined to reveal the acquisition value of Leong Ayamsatu.

Leong Ayamsatu is a producer of day old chicken as well as chicken meat with two facilities in Medan and Jakarta.

The acquisition target is operating 13 chicken breeding facilities in Subang and Medan with the capacity of six million chicken and 62 million day-old chickens per annum.

Malindo Feedmill has planned to issue IDR300 billion bonds next year, and CIMB-GK will become the underwriter. The company will use the money to develop new breeding facility.

The company has targeted the revenue will grow by 10 percent next year to IDR982 billion.