Wilmar

Wilmar: to acquire entire equity stake in PT Jawamanis Rafinasi (JMR), one of the leading sugar refineries in Indonesia. JMR’s refinery currently operates at throughput of 1000 tpd, and is licensed for max throughput of 1600 tpd. Transaction expected to be completed in 4Q10, subject to certain regulatory approvals. Acquisition to be funded by mix of internal sources and bank borrowings…

This deal follows closely behind Wilmar’s recent purchase of Sucrogen. While it is not expected to have significant impact on the company’s financials, it is in line with Wilmar’s strategy to expand its sugar businesses across the value chain, and could lead to synergies and improved operational efficiencies. The Street mostly has Buy ratings, with targets ranging from $6.33 to $8.20.