Indonesian tycoon exits gummy candy industry with $1.1 billion sale

In Indonesia, the Angkosubroto family, one of the country's wealthiest clans, and its partners have exited Yupi Indo Jelly Gum by selling their entire 89.9% stake for a substantial sum of $1.1 billion, equivalent to 18.4 trillion rupiah. This transaction with Hong Kong-based Affinity Equity Partners occurred shortly after the company listed on the Jakarta stock exchange. The sale included 7.6 billion shares priced at 2,390 rupiah each, aligning with Yupi Indo's initial public offering price. The deal was confirmed in a regulatory filing by the company late Wednesday, which had raised 2 trillion rupiah from its IPO by offering 854 million shares. Days before the sale, Yupi Indo had just made its stock market debut, allowing the company to raise significant capital that would be used to boost its working capital and expand production capabilities. Part of these funds will be allocated to constructing a new factory in Nganjuk, a region located around 700 kilometers east of Jakarta, costing approximately 437 billion rupiah. The company is positioned as one of Asia's leading gummy candy manufacturers, distributing its products across Southeast Asia and up to 36 additional countries. The Angkosubroto family, led by Husodo Angkosubroto, had inherited the Gunung Sewu Group, which was originally founded as a commodities trading entity in 1953. Under Husodo's leadership, the group diversified its interests into real estate and agriculture, amassing considerable wealth. Recent figures from Forbes estimate the family’s net worth to be around $1.3 billion. The divestment of the family's stake in Yupi Indo marks a significant shift in the business landscape for the family as they exit a successful venture shortly after its public offering. The decision to sell came at a time when Yupi Indo shares were experiencing a slight decline, trading at 2,310 rupiah, down 3.3% from its IPO price. This development highlights both the rapid changes within the market and the ongoing dynamism of investment strategies among high-profile investors in Indonesia. The involvement of Affinity Equity Partners in the acquisition points to their interest in capitalizing on the growing demand for confectionery products in the region, and suggests a potentially fruitful partnership going forward.