PT Indofood Sukses Makmur had offered SGD488 million in cash for the rest of China Minzhong Food Corp. Indofood is controlled by Indonesian billionaire Anthoni Salim's investment firm while Minzhong operates as a vegetable processing firm.
Indofood had offered SGD1.12 per share pieced for China-based Minzhong. This was according to a statement filed today by Indofood. The offer was the biggest gain of Minzhong since its debut in 2010. The price was also more than double from Minzhog's plunged last August 26 prior to suspension of stock trading.
Last week, Minzhong's market valued had plunged to SGD347 million. The acquisition of China's Minzhong would give Indofood the control of the company which exports vegetables to 26 countries.
A Maybank Kim Eng Holdings Ltd. analyst said, "Minzhong shareholders should sell their shares to Indofood because at S$1.12 most of the investors are in the money."
Minzhong jumped to SGD1.12 at the close of trading in Singapore after it resumed from suspension since August 26.
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