Recently, Delfi entered into an agreement to sell a 50% stake in PT Ceres Meiji Indotama (CMI) to JV partners Meiji Co. and Meiji Seika (Singapore).
(See also: Delfi to dispose entire 50% stake in Meiji’s Indonesia unit for $11.6 mil)
CMI was incorporated under a JV agreement in 2000 to engage in manufacturing and sale of confectionery products in Indonesia.
After an extensive review, Delfi believes CMI is best suited to continue growing under the stewardship of Meiji.
See also: UOBKH raises TP on SIA to $6.22, FY2026 earnings to see lift on fuel cost savings
Exiting the JV will also allow Delfi to redeploy its funds and manpower to focus on growing their core business in Indonesia and regional markets.
The total consideration of the proposed disposal is US$8.3 million and Delfi will recognise a pre-tax gain of US$4.9 million.
OCBC also noted that private consumption in Delfi’s core market Indonesia has been largely supportive of overall economic growth.
“Against this backdrop, we highlight that the group’s Own Brands segment has been growing, and higher sales of its premium products would reap better margins than the value products,” says lead analyst Jodie Foo.
Delfi has a fair value of $2.37. The counter is trading flat at $2.20.
