On April 19, 2017, PT Charoen Pokphand Restu Indonesia (”CPRI”), a subsidiary of the Company, signed Business Acquisition Agreement with PT Modern Sevel Indonesia (”MSI”), a subsidiary of PT Modern International Tbk (“MI”), whereas CPRI agreed to take over the business of MSI in restaurant and convenience store, as well as related assets based on franchise system.  (”Transaction”).

The consideration value of the Transaction is Rp1.000.000.000.000,- (one triliun Rupiah) subject to the result of the valuation and due dilligence.

Transaction will be completed before or on  June 30, 2017, if the conditions precedent of Transaction are satisfied, such as:

1. Corporate approval from MI and MSI, including approval from shareholders’ meeting and Board of Commissioners in regards to the plan of Transaction, are granted;
2. Approval from Governmental authority are granted, including approval from Ministry of Commerce on the clean break of Franchise Agreement and appointment of CPRI as the new franchisee, as well as approval from Financial Services Authority in regards to the Transaction;
3. Approval from the creditor in regards to the Transaction are granted;
4. Approval from 7-Eleven Inc. As the franchisor in regards to the termination of Franchise Agreement with MSI and the appointment of CPRI as the new franchisee;
5. MSI and CPRI settled the related issues in regards to the Transaction by considering the result of valuation and due dilligence.

The Company and CPRI are not the affiliated parties of MI and MSI.

The Transaction is not considered as Material Transaction which stipulated in Rule No. IX.E.2 Decision of Chairman of Bapepam-LK No. Kep-614/BL/2011 dated 28 November 2011 concerning Material Transaction and Change of Main Business Line since the consideration value of Transaction is lower than the value of 20% Company’s Equity based on Audited Consolidated Financial Statements for the year ended December 31, 2016 (Rp2.831.449 juta).

The source of financing of CPRI for the Transaction is internal cash flow.

The Company will be able to expand in the distribution business and to support the food and beverage business which produced by the Company and its entity.

On April 19, 2017, PT Charoen Pokphand Restu Indonesia (”CPRI”), a subsidiary of the Company, signed Business Acquisition Agreement with PT Modern Sevel Indonesia (”MSI”), a subsidiary of PT Modern International Tbk (“MI”), whereas CPRI agreed to take over the business of MSI in restaurant and convenience store, as well as related assets based on franchise system.  (”Transaction”).

The consideration value of the Transaction is Rp1.000.000.000.000,- (one triliun Rupiah) subject to the result of the valuation and due dilligence.

Transaction will be completed before or on  June 30, 2017, if the conditions precedent of Transaction are satisfied, such as:

1. Corporate approval from MI and MSI, including approval from shareholders’ meeting and Board of Commissioners in regards to the plan of Transaction, are granted;
2. Approval from Governmental authority are granted, including approval from Ministry of Commerce on the clean break of Franchise Agreement and appointment of CPRI as the new franchisee, as well as approval from Financial Services Authority in regards to the Transaction;
3. Approval from the creditor in regards to the Transaction are granted;
4. Approval from 7-Eleven Inc. As the franchisor in regards to the termination of Franchise Agreement with MSI and the appointment of CPRI as the new franchisee;
5. MSI and CPRI settled the related issues in regards to the Transaction by considering the result of valuation and due dilligence.

The Company and CPRI are not the affiliated parties of MI and MSI.

The Transaction is not considered as Material Transaction which stipulated in Rule No. IX.E.2 Decision of Chairman of Bapepam-LK No. Kep-614/BL/2011 dated 28 November 2011 concerning Material Transaction and Change of Main Business Line since the consideration value of Transaction is lower than the value of 20% Company’s Equity based on Audited Consolidated Financial Statements for the year ended December 31, 2016 (Rp2.831.449 juta).

The source of financing of CPRI for the Transaction is internal cash flow.

The Company will be able to expand in the distribution business and to support the food and beverage business which produced by the Company and its entity.