Date
21 October 2017
Philip Morris is the top cigarette manufacturer in Indonesia, which is the world’s second-largest market for cigarettes next to China. Photo: Bloomberg
Philip Morris is the top cigarette manufacturer in Indonesia, which is the world’s second-largest market for cigarettes next to China. Photo: Bloomberg

Philip Morris seeks US$1 bln from Indonesia stake sale

Philip Morris International Inc. plans to sell over US$1 billion worth of shares in its Indonesian operation, the Wall Street Journal reported, citing sources familiar with the situation.

The New York-based company, which makes and markets Marlboro cigarettes outside the United States, has tapped investment banks including Goldman Sachs Group Inc., Credit Suisse Group AG, JPMorgan and local firm Mandiri Sekuritas for the sale of its shares in  PT HM Sampoerna Tbk., the sources said.

Indonesia’s stock exchange is requiring all listed companies in the Southeast Asian country to float at least 7.5 percent of their shares. Philip Morris currently owns 98.2 per cent of Sampoerna, which has a market capitalization of about US$23.6 billion, the newspaper said.

Philip Morris is the top cigarette manufacturer in Indonesia, which is the world’s second-largest market for cigarettes next to China.

It is unclear at what price the shares would be sold to investors. The sale is likely to take place in the coming months and be completed before the end of this year, the sources said.

Sampoerna sells clove cigarettes and is the distributor of Philip Morris’s Marlboro brand in Indonesia.

The Jakarta Composite Index has declined 5.9 percent so far this year, making it one of the worst performers in the region, the Journal said.

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RA/CG

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