KKR to up stake in Indonesia's Tiga Pilar Sejahtera Food

TPSF will sell 292.6 million shares to KKR at IDR2,250 apiece by next week, Sjambiri Lioe, the company's director of finance, told Reuters. The proceeds will be used to support expansion into markets such as Malaysia and Vietnam.

KKR became TPSF's second-largest shareholder when it acquired a 9.5% stake for an undisclosed sum in July 2013. The investment was made through funds advised by KKR Asset Management. According to the report, the private equity firm's latest commitment will take its holding in TPSF to around 25%, which suggests additional shares have been accumulated at some point.

TPSF is controlled by TPS Group, which was set up as a family-owned business in Central Java five decades ago. TPSF went public on the Indonesia Stock Exchange in 2003. It is involved in food manufacturing, rice processing and distribution and palm oil and plantations.

The company's portfolio includes a number of well-known Indonesian brands, including Taro Snack, Mie Kremezz, Ayam Dua Telor, Superior, Tanam Jagung, Gulas Candy, and Ayam Jago Rice. TPSF entered the rice industry in 2010 and the palm oil and plantation industry two years before that. Its palm oil assets include a joint venture with Bunge Agribusiness, a global player in agriculture commodities.

TPSF's stock was up 1.86% at IDR2,465 at the end of morning trading on September 19.

Last month KKR appointed Jaka Prasetya, former managing partner and founder of Leafgreen Capital Partners, as managing director with responsibility for Indonesia. He will also work on the firm's credit and special situations initiatives in Southeast Asia.

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