Cargill completes purchase of majority stake in Sorini

by World Grain Staff
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JAKARTA, INDONESIA — Cargill announced on Jan. 28 that it has completed its acquisition of a majority stake in PT Sorini Agro Asia Corporindo Tbk, first announced on Dec. 15, 2010. Cargill now owns 85.01% of Sorini's ordinary shares. With the completion of this transaction, Sorini becomes a subsidiary of Cargill. K L Chopra, president director of Sorini, will continue to lead the business.

"We are excited to be a part of Cargill and by the opportunities accorded to our customers and employees by this transaction," said Chopra. "The combined capabilities and talents of Cargill and Sorini will enable us to better serve customers in Indonesia, Southeast Asia and other markets."

"The rise of major new consumer groups in emerging markets constitutes one of the largest opportunities for Cargill's food ingredients business," said Bram Klaeijsen, president and regional director, Cargill Asia Pacific. "Core ingredients like starches and sweeteners as well as fats and oils play an important role in this regard, and are a focus of our customers who are expanding their presence in emerging markets. The acquisition of Sorini allows us to tap into these opportunities."

Based in Indonesia, Sorini is one of the world's leading producers and suppliers of sorbitol. The company operates seven manufacturing facilities located in Indonesia's East Java and Lampung provinces. Sorini's product range comprises starch and starch derivative products including liquid and powder sorbitol, maltitol, dextrose monohydrate, maltose and maltodextrine, all used in the production of consumer goods such as food and beverages, cosmetics and personal care, and pharmaceuticals.

As required by Indonesian law, Cargill will make a mandatory tender offer for the remaining shares at IDR 3,500 per share.
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