PT Uniflora Prima delay to acquisition PT Davomas Abadi Tbk, Indonesia's largest producer and exporter of cocoa butter and cocoa powder (collectively referred to as cocoa products), after postponed to issuance bonds.
The delay means the change-of-control clause in Davomas' indenture will not be triggered. Under this clause, Davomas must offer a change-of-control payment in cash equal to 101% of the aggregate principal amount of the notes repurchased plus accrued and unpaid interest.
Davomas will rely on its own cash flows to refund the outstanding notes as the transaction with Uniflora is postponed, instead of relying on an inter-company loan that would have been unconditionally guaranteed by higher-rated Uniflora.
Uniflora's concentrated business profile also would not have been materially improved by the acquisition of Davomas Abadi as the activities, client base, and business models of the two companies are similar.
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