New Toyo to acquire printing company

NEW Toyo International Holdings and its Malaysia-listed subsidiary, Tien Wah Press Holdings, are acquiring Indonesia's PT Bintang Pesona Jagat (BPJ) for 304 billion rupiah (S$32.3 million).

BPJ currently engages in the activity of the printing and supplying of printing products and owns printing machinery to support its business.

In a release to Singapore Exchange on Thursday, New Toyo said Tien Wah's subsidiaries, Max Ease International Company Ltd (MEIL) and Max View Holdings Ltd (MVHL), have entered into a conditional sale-and-purchase agreement with PT Bentoel Prima and PT Lestariputra Wirasejati to fully acquire BPJ.

The two sellers and BPJ are subsidiary companies of PT Bentoel International Investama Tbk (PTBINI), which is listed on the Indonesian Stock Exchange. In line with the acquisition, PTBINI and its affiliates will appoint BPJ as the exclusive supplier to supply print supplies to the British American Tobacco group of companies in Indonesia for six years from Jan 1, 2017.

Tien Wah owns a 51 per cent stake in MEIL while New Toyo holds the remaining 49 per cent. In turn, MVHL is a wholly owned subsidiary of MEIL.

As such, New Toyo will hold a 49 per cent stake in BPJ post-acquisition via MEIL and MVHL and will pay a consideration of S$15.9 million (149 billion rupiah).