Delfi ties up with Japan's Yuraku for Indonesian operations

DELFI has signed a pact with Japan's Yuraku Confectionery Company Ltd to set up a joint venture in Singapore to make, develop, market and sell a range of chocolate snack products in Indonesia under the Delfi masterbrand.

The joint-venture company Delfi Yuraku will be majority owned by Delfi with a 60 per cent stake while Yuraku will hold the remaining 40 per cent.

The total initial capital commitment, to be agreed between Delfi and Yuraku, is estimated at US$5-7 million, said the company in a statement.

Delfi's local distribution arm in Indonesia will be appointed as the exclusive distributor of the products in Indonesia.

The launch of the joint-venture company is subject to approvals, including regulatory requirements. The transaction is not expected to have any material impact on the earnings of Delfi for the financial year ending December 2017.

Delfi shares fell one Singapore cent or 0.4 per cent to finish at S$2.31 on Friday.