PT Japfa Comfeed Indonesia
Poultry division (Poultry feed, DOC
breeding, Commercial Farming)
Aquaculture division, which covers fish
and shrimp feed production, shrimp
hatchery and shrimp farming,
Beef Cattle Division
Two supporting Business units (Copra
processing and plastic woven bag)
Purpose of Merger
The merger is expected to lead to gains from integration of
operations, financing, administration, and compliance so
that the company can perform the development of DOC
[day-old chicks] facilities for production
The increase in DOC production would boost demand for
feed for chicken breeders and broilers and would also
influence the growth of Indonesia’s animal feed industry.
The merger was also expected to create cost efficiencies
equal to 3 percent of the company’s total operational
Japfa's fair market price is agreed at IDR
4325, while MBAI at IDR 13,164 per share.
After the transaction completed
Japfa would issue 60.37 million in new shares in return
for the 26.61 % Multibreeder stake currently held by
Two Options for Multibreeder public shareholders
1. To swap 1 share of Multibreeder with 3.025 shares of
2. Sell their shares to Japfa at predetermined price of
Rp 13.164/per share
The exchange will give a liquidity benefit to
Multibreeder’s public shareholders
Through this merger, JPFA will receive borrowing rates
of 7-9% – lower than the previous rates of 10-10.5%
that MBAI received on its own.
With a lower cost of funding, the DOC division
expanded its production to 500m DOCs in 2012.
Greater commercial farm production will follow from
higher DOC production.
Moving ahead, JPFA aims to grow organically by
adding 3m tones to its poultry feed capacity through
expansions in Makassar, Lampung, Padang and
Banjarmasin, as well as by adding two more feed
mills in East and West Java that will support a 2013
top line of Rp20.5trn ($2.05bn), up 13% year-on-year.