Jakarta. Shares of drug packaging manufacturer Champion Pacific Indonesia traded above their one-year high on Friday (24/06) after Mitsui, one of Japan's largest general trading companies, and Japanese packaging firm Fujimori Kogyo said they would take over all minority shares in the local manufacturer as part of a strategy to strengthen their production base in Southeast Asia.

Champion Pacific's share price closed at Rp 310 a piece, or 3.3 percent higher on Friday, against 0.8 percent decline on the broad benchmark index. The company's share price has risen 38 percent since the beginning of this year.

Mitsui and Fujimori Kogyo will first acquire all shares in Kingsford Holdings, which owns 79.42 percent of Champion Pacific.

The companies will then inject capital into Kingsford to make a tender offer to minority shareholders for the 20.58 percent remaining shares in Champion Pacific and to purchase minority interests in Champion Pacific subsidiaries Avesta Continental and Indogravure.

Mitsui and Fujimori Kogyo will ultimately invest 7 billion yen ($68 million) in the deals, with equity share ratios of 40 percent and 60 percent, respectively, Mitsui said in a statement earlier this week.

Mitsui did not provide a breakdown of the investments. Under a financial services regulation, the tender offer price must be higher than the last 90-day average of Champions Pacific's shares price, starting from the day the tender offer was announced in at least two Indonesian newspapers.

"The pharmaceutical market in Indonesia is expected to show high growth because of population growth and economic development, combined with the introduction of a new public health insurance system," Mitsui said.

The deal will combine Fujimori Kogyo's packaging development capabilities and Mitsui's customer base in Asia and Oceania with Champion Pacific's manufacturing base, the Japanese general trading company said.