Jakarta, Indonesia Sentinel — PT Unilever Indonesia Tbk (UNVR) has announced the sale of its ice cream business to PT The Magnum Ice Cream Indonesia in a deal worth Rp7 trillion ($440 million). The move aligns with the global strategy of its parent company, Unilever Plc, to streamline its operations.
In a disclosure on Monday, November 25, Unilever Indonesia’s Corporate Secretary, Padwestiana Kristanti, stated that the business transfer agreement was signed on November 22, 2024.
The transaction value, excluding VAT, includes the fair market value of fixed assets at Rp2.55 trillion, net book value as of September 2024 at Rp1.99 trillion, and inventory value at Rp172.8 billion.
Kristanti highlighted that Magnum Indonesia is an affiliate of Unilever Indonesia, given that both companies share the same parent entity, Unilever Plc. “However, at the time of the transaction’s execution and completion, the buyer will no longer have any affiliation with the company,” Kristanti stated.
The sale of the ice cream business aligns with Unilever Group’s broader plan to spin off its global ice cream business. The divestment of the Magnum ice cream business allows Unilever Indonesia to unlock the value of its investment in the ice cream sector.
“The proceeds from the sale will be returned to shareholders in the short term, while the company focuses on its core businesses to enhance long-term shareholder value” said Kristanti.
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Unilever’s Chief Financial Officer, Vivek Agarwal, highlighted that the spin-off of the ice cream business in Indonesia was prompted by its distinct characteristics compared to other business units, including distribution channels and storage methods.
“By establishing this unit as an independent operation, we can provide better services to meet the growing demand for ice cream in the future,” Agarwal noted.
Strategic Vision
This is not the first move Unilever Indonesia has made concerning its ice cream assets. According to Bisnis, on June 10, 2024, the company signed an agreement to sell ice cream machinery assets to Unilever Thailand for €3.27 million (approximately Rp57.84 billion).
Unilever Indonesia’s management explained that the sale of ice cream machinery assets to Unilever Thailand is expected to deliver greater benefits to the company, including enhanced business focus, optimized space utilization, and improved accessibility.
The spin-off of the ice cream business are part of a strategic overhaul by Unilever Plc’s new CEO, Hein Schumacher, aimed at reversing the company’s poor performance.
The separation of the ice cream unit is a key element of Schumacher’s long-term plan to drive growth, boost profitability, and shed the legacy of overexpansion and failed mergers and acquisitions.
(Raidi/Agung)
