PT Indofood Sukses Makmur Tbk, Indonesia's biggest noodle maker, plans to buy 50 percent stake in Brazil-based sugarcane firm Companhia Mineira de Acucar e Alcool Participacoes (CMAA), the company said in a statement to the stock exchange on Tuesday.
Indofood will buy half of CMAA through its Singapore affiliate Indofood Agri Resources Ltd for $71.7 million. The deal is set to be finalised in the second quarter of this year.
"Brazil is a leader in the global sugar and ethanol industry due to its unique advantages. This acquisition will enable the Group to expand its geographical presence into the sugar and ethanol industry in Brazil, as well as strengthen the Group's diversified plantation business model," the company's statement said.
Shares of the food firm were up 0.83 percent at 6,100 rupiah. The broader Jakarta Composite Index was up 0.29 percent.
1145 (0445 GMT) (Reporting by Andjarsari Paramaditha; Editing by Prateek Chatterjee)