PT Sierad Produce (SIPD) Tbk, once a feed and poultry player, is offering 2.11 billion new shares with preemptive rights at Rp520 per share. Interesting that PT Great Giant Pineapple and PT OCBC Sekuritas Indonesia are stand-by buyers of the rights issue, which would result in PT Great Giant Pineapple’s majority control in Sierad Produce.
According to the rights issue prospectus, Great Giant Pineapple would subscribe 1.92 billion SIPD new shares, while OCBC would absorb 189.92 million shares.
Great Giant Pineapple (GGP) is an agriculture company controlled by the family of Husodo Angkosubroto (Duta Anggada/Far Point/Gunung Sewu Group). According to Gunung Sewu’s website, GGP’s plantation land covers 32,000 hectares in Lampung, Sumatra, of which 19,000 hectares is dedicated for growing Cayenne pineapples. GGP claims of processing more than 500,000 tons of pineapples per annum and exports 11,000 containers of canned pineapples to more than 60 countries. “Every six canned pineapple in the world comes from GGP,” the Company used to claim.
According to the prospectus of SIPD, PT GGP is owned by PT Sewu Agro Investama (70%), Paulo Liman (8.67%), Eternal Rich Asia Ltd (6.67%), Setiawan Achmad (7.04%), PT Tantio Danamy Anagram (4.67%), and PT Setiaprima Agrojaya (2.95%).
Husodo Angkosubroto is chairman of GGP, while Lanny Angkosubroto is commissioner. Lanny, if you recall, was famous in the dispute between Gondokusumo family and Manulife Financial Group a decade ago.
GGP had total assets and equity of US$289.96 million and US$94 million respectively as at December 31, 2013. The Company generated operating profit of US$22.65 million from sales revenue of US$311.7 million in 2013, relatively stable from US$23.2 million and US$311 million in the previous year, but significantly smaller than US$44.9 million and US$326 million it booked in 2011.
GGP is parent of PT Great Giant Livestock (GGL), which is involved in the supply of livestock to Indonesian market. GGL is parent of Agri International Pty Ltd, which owns cattle farming in Northern Australia (21,000 livestock at the moment). In seven months of 2014, GGL booked net profit of Rp14.2 billion from sales revenue of Rp529 billion. While sales revenues jumped more than 100% from the same period of 2013, net profit dropped significantly from Rp25.64 billion.
It is interesting to see what Gunung Sewu and Husodo Angkosubroto would do next after controlling SIPD. We all know that the group has some other agriculture units outside GGP. They are (1) Nusantara Tropical Farm (NTF), (2) Sewu Segar Nusantara (SSN), (3), Umas Jaya Agrotama, and (4) Bromelain Enzyme. NTF claims itself the largest grower of Cavendish bananas in Indonesia and supplies affiliated company SSN, which also distributes guavas, melons, papayas, kiwis, apples, pears, oranges, etc. Umas Jaya, meanwhile, manufacturers tapioca starch for the food and beverage, pulp & paper, with production capacity of 80,000 tons per annum.
Outside agriculture, Gunung Sewu controls Yupi Indo Jelly Gum, which claims itself the largest gummy candy manufacturer in Southeast Asia.
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