Packaging Firm Dwi Kemasindo Postpones $24m acquisition Plans

Friday, Sep 25, 2015

Packaging firm Dwi Aneka Jaya Kemasindo has postponed its plan to acquire two other companies until next year, citing weak economic conditions.

The company, known as Dwi Kemasindo, has been in talks with a packaging company over a Rp 125 billion ($8.5 million) bid and with a retail stationery firm over a Rp 225 billion bid since early this year.

"It's still ongoing, but the timing would be moved back, considering recent economic conditions," said the company's finance director, Wahyu Rahmad Hidayat.

Indonesia posted its weakest economic growth since 2009 in the second quarter, dampening demand for manufacturing goods and in turn undermining many companies' cash flows and profits.

Dwi Kemasindo is currently building a corrugated carton factory in Subang, West Java, slated to start production in 2017.

The company last week secured Rp 2.2 trillion in syndicated loans for the construction, to restructure its existing debt and to secure its capital expenditure and working capital for the year ahead, Wahyu said.

Other News