PPB Group Indonesian asset sale a positive

PETALING JAYA: The proposed sale of PPB Group Bhd’s controlling interest in its Indonesian flour mill, PT Pundi Kencana (PK), to 19%-associate Wilmar International Ltd will allow Wilmar to consolidate its other wheat and rice flour milling businesses in Indonesia, says Kenanga Research.

The deal will see FFM Bhd, which is 80% owned by PPB, selling its 51% stake in PK to Wilmar for RM87.5mil, thus valuing PK at RM172mil.