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.
Jumat, 22 Juli 2011
Consumer goods industry: KT&G acquires local cigarette manufacturer - Mandiri
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