Jakarta. Unilever Indonesia (IDX: UNVR) plans to sell its ice cream business to The Magnum Ice Cream Indonesia as part of Unilever Group’s global strategy to separate its ice cream operations and refocus on its core business.

Padwestiana Kristanti, Corporate Secretary of Unilever Indonesia, confirmed on Tuesday that the deal was formalized through a Business Transfer Agreement (BTA) signed on Nov. 22. The transaction is valued at Rp 7 trillion (excluding VAT), or approximately $440.12 million. The sale includes fixed assets valued at Rp 2.55 trillion at market value and Rp 1.99 trillion in net book value as of Sept. 30, along with inventory valued at Rp 172.79 billion on the same date.

An independent business valuation conducted by Suwendho Rinaldy & Partners Public Appraisal Services estimated the fair market value at Rp 6.57 trillion. The transaction value represents 204 percent of Unilever Indonesia's equity, which was recorded at Rp 3.43 trillion in the company’s financial report as of Sept. 30, 2024.

At the time of signing the BTA, The Magnum Ice Cream Indonesia had an affiliate relationship with Unilever Indonesia, as both companies are ultimately controlled by Unilever PLC. However, following the transaction's completion, the buyer will no longer have an affiliate relationship with Unilever Indonesia.

In March, Unilever PLC announced plans to cut 7,500 jobs and spin off its ice cream business to reduce costs and boost profits.

The London-based company said that its ice cream business, which includes brands like Magnum and Ben & Jerry, has "distinct characteristics" that make it better suited for separate ownership to drive growth. The split is expected to be finalized by the end of next year.

Unilever Indonesia will seek approval from its shareholders at the upcoming General Meeting of Shareholders (GMS) and from independent shareholders at the Independent GMS.

Unilever Indonesia's stock saw a notable surge on November 25, rising by 6.69 percent to Rp 1,915, following a 3.16 percent increase on Nov. 22. Trading activity on November 25 showed significant interest, with Maybank Sekuritas recording a net buy of Rp 32.5 billion, while foreign investors made a net buy of Rp 39.8 billion.