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JB Foods buys 80% stake in Indonesian cocoa bean facility for $23 million

Published on Sep 2, 2014 10:43 PM

SINGAPORE - Cocoa ingredient maker JB Foods will buy an 80 per cent stake in PT JeBe Koko, a cocoa bean processing facility in Gresik, Indonesia, for $23 miillion.

The firm will issue 38 million new shares at 30 cents apiece to fund the acquisition, it said in a statement on Tuesday.

This represents a 42.3 per cent discount to the proportionate fair value of the proposed acquisition at US$31.9 million, according to an independent valuer appointed by the firm.

"PT JeBe Koko has been part of our operational supply chain and we feel it is timely to exercise our call option so that we can fully integrate our cocoa ingredient production facility," said Mr Tey How Keong, chief executive of the firm.

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