Japanese packaging maker Rengo buys shares in Indonesian peers
JAKARTA, NNA - Japanese packaging maker Rengo Co. has bought shares in three Indonesian corrugated container producers through its Thai affiliate, Thai Containers Group Co., for 822 billion rupiah ($57 million).
The acquisitions involve 75 percent each of PT Indonesia Dirtajaya Aneka Industri Box, PT Bahana Buana Box and PT Rapipack Asritama, collectively called the Intan Group. The deal was carried out by Thai Containers Group's wholly owned TCG Solutions Pte. Ltd., according to Rengo.
The investment amount may rise up to 859 billion rupiah depending on Intan Group's incremental financial performance for fiscal 2022 and 2023 under the earn out clause of the agreement, a Rengo official told NNA.
The share purchases give Rengo control of four additional corrugated packaging factories, bringing to 11 the total number of plants the Osaka-based company operates in Indonesia.
The plants of the group are located in Bekasi in West Java near Jakarta, in the suburbs of Surabaya in East Java, near Semarang in Central Java and Manado in North Sulawesi. The Rengo official declined to disclose the group's production capacity.
Elsewhere in the country, Rengo has four corrugated packaging factories under its wing through PT Surya Rengo Containers, a joint venture between Rengo and Indonesian food business Indofood Group, and three via Thai Containers Group.
Thai Containers Group is owned 30 percent by Rengo and 70 percent by SCG Packaging Public Co., a subsidiary of Thai material giant Siam Cement Public Co. (NNA/Kyodo)