Jakarta, Indonesia – Unilever Indonesia has officially completed the sale of its ice cream business, as part of its parent company's global strategy to streamline operations.
Padwestiana Kristanti, Corporate Secretary of Unilever Indonesia, confirmed on Tuesday that the transaction was formalized through a Business Transfer Agreement (BTA) signed on November 22. The deal was valued at Rp7 trillion (approximately US$440.12 million), excluding value-added tax. The sale included fixed assets valued at Rp2.55 trillion and inventories valued at Rp172.79 billion as of September 30, 2024.
An independent business valuation conducted by Suwendho Rinaldy & Partners Public Appraisal Services estimated the fair market value at Rp6.57 trillion. The transaction value represents 204% of Unilever Indonesia's equity of Rp3.43 trillion as recorded in its financial statements as of September 30, 2024.
At the time of the BTA signing, The Magnum Ice Cream Indonesia was a subsidiary of Unilever Indonesia, as both companies were ultimately controlled by Unilever PLC. However, upon completion of the transaction, the buyer will no longer have an affiliate relationship with Unilever Indonesia.
In March, Unilever PLC announced plans to cut 7,500 jobs and spin off its ice cream business as part of efforts to reduce costs and boost profits. The London-based company said the ice cream business, which includes brands such as Magnum and Ben & Jerry's, has "distinct characteristics" that make it more suited to separate ownership to drive growth. The split is expected to be completed by the end of next year.
Unilever Indonesia will seek shareholder approval for the transaction at its upcoming General Meeting of Shareholders (GMS) and Independent General Meeting of Shareholders (Independent GMS).
Shares of Unilever Indonesia surged 3.16% on November 22 and climbed another 6.69% to 1,915 rupiah on November 25. Trading activity on November 25 saw significant interest, with Maybank Sekuritas as a net buyer of Rp32.5 billion and foreign investors as net buyers of Rp39.8 billion.
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