blog.indahnesia.com - Discover Indonesia Online

    
You are currently in > Just a blog about Indonesia > Philip Morris offers to buy Sampoerna for US$5.2 billion


Philip Morris offers to buy Sampoerna for US$5.2 billion JAKARTA - Marlboro maker Philip Morris on Monday said it is offering US$5.2 billion for one of heavy-smoking Indonesia's largest cigarette firms to expand its share of one of the world's biggest markets. The US firm agreed to acquire a 40 percent stake in Sampoerna for 10,600 rupiah a share -- 20 percent higher than the closing price of 8,850 last Thursday -- and said it wanted to buy the remainder for the same amount.
Sampoerna's shares rose sharply on the offer, which Philip Morris International -- the operating arm of the Altria Group -- hopes to complete within 90 days, paying cash for the stock. In what will be one of the largest tobacco industry acquisitions in recent years, Philip Morris will be able to tap into an expanding market, offsetting losses due to anti-smoking laws and costly health-related litigation elsewhere.
Some 70 percent of Indonesia's 213 million people smoke and 57,000 deaths a year are blamed on tobacco but there is little legislation to protect users. Indonesia is the world's fifth largest cigarette market, after China, the United States, Russia and Japan. "Our investment in Sampoerna is a great opportunity to significantly expand our business in the world's fifth-largest and growing cigarette market," Andre Calantzopoulos, president of Philip Morris International, said in a statement.
"Today's announcement reflects our confidence in the economic future of Indonesia and its tobacco industry, and positions us for profitable future growth by partnering with a well-managed and successful company that has an outstanding distribution and manufacturing infrastructure." Sampoerna, which makes the notoriously strong-smelling and tasting kretek or clove cigarettes, including the Dji Sam Soe and A Mild brands, produced sales of nearly US$1.0 billion in 2004, making it Indonesia's third biggest tobacco firm with 20 percent of the market.
Cigarette firms are steady earners on Jakarta's stock exchange, which has enjoyed mixed fortunes in its efforts to recover from the 1997-98 Asian financial crisis, dogged by corruption, other abuses and high political risk. Sampoerna, whose shares almost doubled in value over the last year, was up a sharp 16 percent at 10,300 rupiah in morning trade Monday on news of the deal. Rival manufacturer Gudang Garam was up 2,300 rupiah or 14.11 percent at 18,600. "This is an excellent development for our shareholders and employees," said Putera Sampoerna, the Indonesian firm's president.
Traders were caught off guard by the announcement, which comes just months after a Sampoerna subsidiary struck a deal to distribute Marlboro and other leading Philip Morris brands across Indonesia. "It is surprising because we did not think of this scenario before," said Prayoga Triyono, an analyst with brokerage firm PT Henan Putirai. "I don't think Putera Sampoerna is in need of money."
Despite the substantial figures involved, the Philip Morris investment is unlikely to be viewed as the financial reversal of fortunes promised forIndonesia by new President Susilo Bambang Yudhoyono. The government's priority is to attract US$150 billion of investment in infrastructure projects and the president has announced a war on graft red tape in an effort to attract foreign cash.



Posted in Economy @ 14 March 2005 00:01 CET by Jeroen · 'Blog' RSS feed · permalink






There are no reactions on this blog entry yet. Be the first one to give a reaction here!


Log in to write a reaction

You are not logged in to the website. You have to be logged in to write a reaction on this blog entry.

· If you already have an account, please login.
· If you have lost your password, please retrieve it.
· If you don't have an account yet, you can create one.

    
 ABOUT THIS ENTRY
Add this blog entry to your email, your own blog, MySpace, Facebook, or whatsoever via AddThis:
Bookmark and Share

e-mail updates for this blog article

Login if you want to receive emails for reactions on this blog entry. You will receive an update as soon as a reaction on this blog entry is posted.

Your website for tickets in Indonesia!
Looking for e-tickets for flights in Indonesia? Here's your solution! Order your e-tickets at ticketindonesia.info.
 FOLLOW US ON TWITTER
 BLOG ARCHIVE
· 2015, 28 entries
· 2014, 591 entries
· 2013, 750 entries
· 2012, 1061 entries
· 2011, 792 entries
· 2010, 644 entries
· 2009, 916 entries
· 2008, 504 entries
· 2007, 725 entries
· 2006, 1014 entries
· 2005, 723 entries
· 2004, 558 entries
· 2003, 525 entries
· 2002, 375 entries
· 2001, 162 entries
 POPULAR TAGS
· gigolo
· jakarta
· blogger
Automatically generated every hour
 BLOG CATEGORIES
· General (1205 entries)
· Economy (643 entries)
· Politics (574 entries)
· Accidents (561 entries)
· Terrorism (541 entries)
· Earthquake (539 entries)
· Volcanoes (387 entries)
· Crime (357 entries)
· Corruption (349 entries)
· Flooding (278 entries)
· Elections (276 entries)
· Travel (268 entries)
· Bird Flu (254 entries)
· Religion (242 entries)
· Tourism (239 entries)
· Oddly enough ... (219 entries)
· Violence (198 entries)
· Drugs (196 entries)
· Health (192 entries)
· Aceh conflict (191 entries)
· Environment (185 entries)
· Weather (171 entries)
· Military (168 entries)
· Protests (157 entries)
· Culture (106 entries)
· Garuda Indonesia (91 entries)
· C. Sulawesi conflict (86 entries)
· Human rights (82 entries)
· Forest fires (78 entries)
· Sidoarjo mudflow (71 entries)
· Power supply (64 entries)
· Ramadan (63 entries)
· PT Freeport (55 entries)
· Picture guess (48 entries)
· Maluku conflict (47 entries)
· Dengue Fever (37 entries)
· History (37 entries)
· Infrastructure (36 entries)
· Polio (35 entries)
· Mexican flu (35 entries)
· Website (25 entries)
· Media (22 entries)
· Nuclear power (21 entries)
· Sports (20 entries)
· Sexy (16 entries)
· SARS (15 entries)
· Nightlife (10 entries)
· Others (5 entries)
· Lippo Cikarang (5 entries)
· Close smallest categories
 EXCHANGE RATES
EUR-IDR: 16,590 · 16,620  The Rupiah rate declined since yesterday
@ 17 May 2018 18:12 CET
JPY-IDR: 126.83 · 126.95  The Rupiah rate improved since yesterday
@ 17 May 2018 21:58 CET
MYR-IDR: 3,545 · 3,549  The Rupiah rate declined since yesterday
@ 15 May 2018 08:42 CET
SGD-IDR: 10,479 · 10,501  The Rupiah rate declined since yesterday
@ 07 May 2018 07:48 CET
THB-IDR: 439.14 · 439.41  The Rupiah rate declined since yesterday
@ 16 May 2018 09:18 CET
USD-IDR: 14,097 · 14,157  The Rupiah rate declined since yesterday
@ 17 May 2018 00:46 CET
Go to 'exchange rates' 
 MOST RECENT REACTIONS
·  At 14 July 2020 08:32 newnight reacted on Three more bodies of AirAsia victims to Surabaya hospital
·  At 20 September 2018 06:54 erik12 reacted on Fuel prices lowered, again
·  At 19 October 2015 17:17 imambudianto5 reacted on Bank Indonesia maintains benchmark interest rate at 7.75%
·  At 04 March 2015 19:18 merdekaSah reacted on Alleged terrorists shot dead three villagers in Poso
·  At 04 March 2015 13:11 Yogya-Bali reacted on Alleged terrorists shot dead three villagers in Poso
·  At 26 February 2015 13:02 Irena reacted on Sexy, a young woman with candy
·  At 08 May 2014 09:51 jstar reacted on No alcohol should be sold in warung
·  At 01 May 2014 10:07 jstar reacted on Indonesia to be among the top 10 peacekeeping contributors
·  At 27 March 2014 05:50 harlys reacted on PPP leader voices concern over Islamic parties' future
·  At 10 March 2014 06:11 Yogya-Bali reacted on Sriwijaya Air leaves behind 200 passengers at airport
·  At 09 March 2014 00:11 Yerun reacted on Sriwijaya Air leaves behind 200 passengers at airport
·  At 08 March 2014 20:33 nicknick reacted on Sriwijaya Air leaves behind 200 passengers at airport
·  At 18 February 2014 04:17 Yerun reacted on Ash from Mount Kelud eruption spreads over all of Java
·  At 16 February 2014 05:41 Amed East Bali reacted on Ash from Mount Kelud eruption spreads over all of Java
·  At 14 February 2014 22:27 Anne Mieke reacted on Asylum seekers in Medan wish to be sent to Australia
·  At 14 February 2014 22:22 beritaislam reacted on Asylum seekers in Medan wish to be sent to Australia
·  At 16 January 2014 15:37 Anne Mieke reacted on Landslides cut off Tomohon-Manado road
·  At 16 January 2014 15:21 Yerun reacted on Landslides cut off Tomohon-Manado road
·  At 16 January 2014 15:05 Anne Mieke reacted on Landslides cut off Tomohon-Manado road
·  At 16 January 2014 14:48 Yerun reacted on Landslides cut off Tomohon-Manado road
Go to 'forum topics' 

Created by indahnesia.com · feedback & contact · © 2000-2020
Other websites by indahnesia.com: ticketindonesia.info · kamus-online.com · indonesiepagina.nl · suvono.nl

Valid HTML 4.01 Transitional 140,590,779 pageviews Discover Indonesia Online at indahnesia.com