Indofood to go ahead with US$3 billion purchase of noodle producer Pinehill

Indonesia’s largest instant noodle producer, Indofood CBP Sukses Makmur earlier plan to acquire instant noodle maker Pinehill Company for US$3 billion gets the green light from shareholders as it eyes growth in new markets like Africa and the Middle East.
During the shareholders’ meeting held on 15 July, Indofood, which makes the popular Indomie brand instant noodles, managed to secure a slim majority to go ahead with the proposed deal.
An Indofood spokesman said the purchase presents a golden opportunity to expand into fast growing and profitable new markets. Through its subsidiaries, British Virgin Islands-based Pinehill has a dozen factories with capacity to produce up to 10 billion packs of instant noodles annually.
Its key markets include fast growing economies like Saudi Arabia, Nigeria, Egypt, Turkey, Serbia, Ghana, Morocco and Kenya.
Pinehill’s sales in 2019 reached US$533.5 million with pre-tax profits of US$125.0 million, according to the filing. Pinehill makes and distributes Indofood noodles in Africa and the Middle East, from Pinehill Corpora and Steele Lake. Anthoni Salim indirectly owns 49% shares of Pinehill Corpora, which in turn, controls 51% shares of Pinehill Company.