SCG Packaging to buy 55% stake in Indonesian packaging paper company Fajar
Packaging industry news : Thai packaging company SCG Packaging, a subsidiary of Siam Cement (SCC), has signed a conditional sale and purchase agreement to acquire a 55% stake in Indonesian packaging paper company PT. Fajar Surya Wisesa Tbk for future growth opportunities in the packaging business.
The transaction is valued at approximately $665 million, which will be financed by SCG Packaging through internal sources. The acquisition is expected to provide the Thai packaging company future growth opportunities in the ASEAN region, particularly in Indonesia.
To be executed through its subsidiary, the transaction is likely to be completed in the third quarter of this year.
Siam Cement said that it is in the process of exploring the feasibility of increasing equity at the SCG Packaging level, which is expected to be completed by the end of this year.
SCG Packaging to acquire majority stake in Indonesian packaging paper company Fajar Surya Wisesa. Photo courtesy of SCG.
Established as a limited liability company in 1988, Fajar Surya Wisesa has an installed capacity of 1,300,000 metric tons per year and produces a range of products that include Coated Duplex Board for display packaging, and Kraft Liner Board and Corrugated Medium Paper for carton-box packaging.
The Indonesian packaging paper company, with the total sales of 1.38 million tons of packaging paper in 2018, reported sales of 9.94 trillion Rupiah (approximately 21,900 million Baht) and profit of 1.41 trillion Rupiah (approximately 3,100 million Baht) for the year.
As on 31 December 2018, Fajar Surya Wisesa had total assets of 10.97 trillion Rupiah (approximately 24,100 million Baht) and a total staff of approximately 2,900 employees.
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