Cargill takes majority stake in sorbitol company

EXPANDING its regional sweetener footprint, Cargill is acquiring a majority stake in Indonesia-based PT Sorini Agro Asia Corporindo Tbk, one of the world's leading producers and suppliers of sorbitol.

To do so, Cargill will purchase all of the ordinary shares of Sorini held by the majority shareholder PT AKR Corporindo Tbk at a price of IDR 3,500 per share. The company also is acquiring a block of ordinary shares of Sorini from UOB Kay Hian Pte Ltd at the same price per share. Both share purchase transactions combined will result in Cargill owning 85.01% of the ordinary shares of Sorini, at a combined purchase price of IDR 2,720 billion (approximately $300 million). Upon close of the transactions, Sorini will become a subsidiary of Cargill.

Sorini operates seven manufacturing facilities located in Indonesia's East Java and Lampung provinces. Sorini's product range comprises starch and starch derivative products including liquid and powder sorbitol, maltitol, dextrose monohydrate, maltose, and maltodextrine, all used in the production of consumer goods such as food and beverages, cosmetics and personal care, and pharmaceuticals.