KKR to acquire stake in PT Japfa Tbk for $81.2m

Global investment firm KKR will acquire a 10.44% interest in Japfa’s major subsidiary PT Japfa Comfeed Indonesia Tbk for $81.2m.

PT Japfa Tbk will place out 750 million new shares to KKR though a private placement at $52.9m. Japfa will also sell 441.7 million shares in PT Japfa Tbk to KKR for $28.3m.

Japfa chief executive officer Tan Yong Nang said: "We believe PT Japfa Tbk will benefit from KKR’s deep knowledge and experience in the agriculture and food sector, and its long-term investment thesis of promoting and enhancing the availability of safe and healthy food.

"We look forward to deepening our partnership with KKR in the future."

KKR co-head of Asia private equity Ming Lu said: "We see a great opportunity for Indonesia’s poultry market given the country’s rising middle-class, favourable urbanisation trends and increasing protein consumption.

"Japfa is the right partner with which to capture these opportunities given its leading market position, experienced management team and strong focus on food safety."

The private placement and share sale are a part of Japfa’s overall strategy to inject fresh funding to bolster its balance sheet.

Japfa will see a capital gain of $21.2m from the sale of its shares in PT Japfa Tbk.

KKR has been investing in Indonesian companies since 2013.