Swiss Firm DKSH to Acquire Majority Stake in Indonesia's Wico
Jakarta. Switzerland-based distribution company DKSH Holding plans to acquire the majority stake in Indonesian listed distribution company Wicaksana Overseas International, or Wico, in a bid to make inroads into Southeast Asia's largest economy.
The company will purchase Wico's stake from existing shareholder Djajadi Djaya, who currently controls a 78.1 percent stake in Wico, of which Djajadi is the founder and current president commissioner.
DKSH is set to purchase 730 million shares in Wico, which represents 60 percent of the company's total equity, according to a Tuesday (11/07) filing on the Indonesia Stock Exchange (IDX).
Wico did not disclose the total value of the acquisition, though following the news company share prices increased sharply, closing 24.74 percent higher to Rp 474 (3.5 US cents) per share on the day, compared to a 0.03 percent increase in the broader index.
The Zurich-headquartered company said prior to the acquisition, DKSH did not own shares in Wico.
"Their entrance into Indonesia through partnering with us is the perfect strategy and synergy to capture the large market of the fourth most populous country in the world," Wico president director Eddy Suwandi said in the filing.
"By partnering with DKSH, we are starting another exciting chapter in our successful history. We will connect our company to DKSH’s Asian distribution network, which is becoming increasingly important for consumer goods and pharmaceuticals clients," Edy said.
"Together with DKSH, we will continue to invest in new business, expand service capabilities to clients, further widen our network and improve our facility standards in Indonesia."
Founded in 1865, DKSH is a service provider company that deals in consumer goods, healthcare, performance materials and technology.
DKSH, publicly listed on the SIX Swiss Exchange since 2012, operates in more than 35 countries.
"Wico’s distribution network is the ideal platform for us to further expand our business by investing in Indonesia. We now can offer our clients an even larger platform for expansion across the Asian growth markets," DKSH president director Steven Butz said.
Wico, founded as Djangkar Djati in 1964, began by trading in export and import services. The company's business now focuses on the distribution of consumer goods and pharmaceuticals products, operating up to 32 distribution centers across major cities in Indonesia.
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