Japan’s K.R.S. to acquire 4 arms of Indonesian cold chain group for $62 mil.
JAKARTA, NNA – Japanese logistics service provider K.R.S. Corp. is set to acquire four companies under leading Indonesian cold chain business operator Kiat Ananda group for a total of 904 billion rupiah ($62 million).
The deal is part of K.R.S.’s strategy to expand its overseas business, which it views as a key driver for growth, it said in a statement released Thursday.
The Tokyo-listed firm approved at a board meeting the takeover of the Kiat Ananda affiliates by buying shares through a third-party allotment.
K.R.S. signed contracts on the purchase with the four companies on Friday, a company spokesman told NNA in a telephone interview. The firm is scheduled to make payment by Sept. 30.
After the takeover, K.R.S. will acquire 51 percent of the voting rights in each of the four companies.
The four firms are PT. Kiat Ananda Cold Storage based in Bekasi, West Java, PT. Ananda Solusindo headquartered in Bogor, West Java, Jakarta-based PT. Manggala Kiat Ananda and PT. Trans Kontainer Solusindo, also in Bekasi.
The Kiat Ananda group is a major Indonesian cold chain service provider owning five cold storage warehouses and 590 vehicles. The group provides warehouse, transportation and forwarding services mainly for both local and foreign food makers and dining outlet operators in Indonesia.
By turning the four Kiat Ananda affiliates into subsidiaries, K.R.S., which excels in food logistics including cold chain services, is poised to establish its logistics hubs and transportation network in the huge and rapidly growing Indonesian market, the spokesman said.
K.R.S. further aims to expand its logistics network in Indonesia. “Four of (Kiat Ananda’s) five cold storage warehouses are concentrated in Java, but we would like to establish more such facilities in other areas of Indonesia and expand the transportation network,” the spokesman said.
He added that K.R.S. will consider expanding business such as marketing in other Southeast Asian countries.
Indonesia is the second country overseas for K.R.S. to have subsidiaries in, following China where it operates local subsidiary Shanghai KRS Logistics Corp.