Pan Brothers in $9.63m Take-Over Deal
Jakarta. Textile firm Pan Brothers plans to acquire two garment makers in Semarang, Central Java, in a deal worth $9.63 million, a company director revealed.
“We are now in intense talk with shareholders of these garment producers,” Pan Brothers’ director Fitri Ratnasari Hartono said in a statement.
The company seeks to take full control of Matrix Indo Global and Maxmoda Indo Global through their subsidiary Pancaprima Ekabrothers.
“The acquisition is worth no larger than 5 percent of Pan Brothers’ total equity as of June 30, 2014 — which stood at $192.66 million,” Fitri said, adding that the two companies will serve to complete the existing line up of Pan Brothers products.
The textile company has allocated $40 million for its capital expenditure this year, a 17.6 percent increase from 2014’s figure of $34 million.
Roughly 50 percent of this year’s capex will be used for inorganic expansions, or growth through mergers and acquisitions, while the remainder is set aside for routine spending to boost production from its existing facilities.
Pan Brothers hopes to develop seven new textile factories by 2016.
The company will this year complete construction on four factories with a production capacity of 15 million articles of clothing per year.
Pan Brothers booked a total sales of $252.7 million in January-September last year, a 4.3 percent drop from the same period in 2013. Net income fell sharply by 37.2 percent to $5.3 million.
Pan Brothers is controlled by entrepreneur Bambang Setijo, whose net worth was estimated at $110 million, according to GlobeAsia’s Richest 150 Indonesians in June 2013 edition. He was ranked 143th that year, but failed to make the list in 2014.
Investor Daily
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