KKR invests $81.2m in Indonesia's Japfa

The transaction includes the purchase of 441.7 million shares for $28.3 million from the business's Singapore-based parent company, Japfa, as well as a $52.9 million private placement for 750 million shares in the Indonesia-listed subsidiary. Japfa will retain a 51% interest in Japfa Comfeed.

"We see a great opportunity for Indonesia's poultry market given the country's rising middle class, favorable urbanization trends and increasing protein consumption," Ming Lu, co-head of Asia private equity at KKR, said in a statement. "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."

For KKR, the investment represents a move to exploit a rising per capita GDP in the country and expectations that the local economy will be among the world's 10 largest within 15 years. The firm is expected to leverage its agriculture and food sector experience in this context by promoting the availability of safe and healthy food.

Founded in 1975, Japfa supplies protein staples such as chicken, beef and milk across China, India and Southeast Asia. Its Japfa Comfeed business is one of the largest poultry players in Indonesia and recorded a 55% increase in profit during the 2015 financial year to $91.8 million on the back of improved supply-demand dynamics. Revenue during the year, however, declined 5.4% to $2.8 billion.

KKR has maintained a presence in Indonesia since 2013, with nine globally active portfolio companies employing about 1,000 people in the country. Outside of the firm's private equity business, its investments in the country have included a IDR658 billion commitment in Tiga Pilar Sejahtera Food to back a regional expansion effort.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Consumer
• PIPEs
• Indonesia
• KKR
• Agriculture