July 22 (Bloomberg) -- PT Tiga Pilar Sejahtera Food, Indonesia’s second-best performing food stock over the past year, jumped to a record after KKR & Co. agreed to buy a stake.
Tiga Pilar soared 6.3 percent to 1,530 rupiah ($0.2), the highest close since its trading debut in June 1997. The stock has increased 42 percent this year, surpassing the 8.4 percent gain in the Jakarta Composite Index.
The deal “lends credibility to Tiga Pilar,” Wilianto Ie, head of equity research at PT Nomura Indonesia, said by phone today. The transaction also “reflects well on Indonesia. It shows the country is still attractive to foreign investors.”
KKR would buy about 9.5 percent of Tiga Pilar, the company and the private-equity firm said in a joint statement without elaborating the terms of the agreement. The purchase will make KKR the company’s second-largest shareholder.
The Jakarta Consumer Goods Index has climbed 33 percent this year, the top performer in the Jakarta gauge after real estate and construction stocks, as investors bet on higher wages and strong growth in consumer spending in the world’s fourth-most populous nation.
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