According to Japfa, based on sale of minority stakes in AIH to other parties last year, AIH is valued at US$1.17 billion ($1.59 billion). This means Japfa’s 62.5% share in AIH is worth some $992 million, or 49 cents per share. Meanwhile, Japfa’s stake in its Jakarta-listed subsidiary, PT Japfa Tbk, is similarly valued at 49 cents per Japfa share, using the Indonesia-listed entity’s current market value as a gauge.
For years, Japfa has been building up its business of rearing chickens, pigs and cows on an industrial scale. Despite its position as a leading player in this field, meeting a basic yet growing demand from consumers for more protein in their diet, investors’ appetite for its shares have not quite picked up in a big way.
On March 29, the company announced plans to spin off its dairy operations in China for its own listing in Hong Kong. If the listing of AustAsia Investment Holdings (AIH) goes ahead, Japfa shareholders will get to enjoy a distribution in specie of AIH shares, which can potentially result in Japfa shareholders holding shares worth more than what they are trading at now.
