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Jumat, 22 Juli 2011

Consumer goods industry: KT&G acquires local cigarette manufacturer - Mandiri

􀂄 KT&G (Korean Tobacco) agrees to pay US$133mn to acquire 60% stake in Trisakti Purwosari, a local hand rolled cigarette producer. No further details are disclosed by the company.
􀂄 In term of sales volume, Trisakti is about 1/70x of that of HMSP, according to GAPPRI data on 2006-2009; therefore we roughly estimate its FY11 net profit is around Rp100bn. This is equivalent to an acquisition valuation at PER of around 20x.
􀂄 The deal once again reflects foreign company’s optimism on Indonesia cigarette industry. We do not cover both companies.

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