Bioxyne extends its footprint to Indonesia as it acquires majority ownership in an Indonesian sales company

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Today morning, 26 September 2018, Bioxyne Limited announced the acquisition of 95% holdings in the Indonesian Direct Selling Company P.T. Gamat Utama (PTG) for an up-front purchase consideration of $121,000. The seller PTG continues to hold back 5% interest in the company.

In addition to the cost of takeover, Bioxyne is reportedly liable to pay further $44,000 if the revenue from ‘existing’ sales exceeds $450,000 in a year falling next to the date of acquisition.

Seller PTG holds a direct sales license in Indonesia, acquired in 2015. It is into distribution business of health products and supplements with 2,500 members.

Bioxyne told investors that Indonesia’s direct selling market which attracts a value of US$1 billion and plus gives a massive growth opportunity to Bioxyne’s consumer dietary supplements and its other health and wellness products.

The acquisition marks a key geographical expansion of Bioxyne’s business which provides a new distribution channel to penetrate into Indonesian market while seizing an advantage over economies of scale in New Zealand’s distribution and production facilities.

CEO of Bioxyne Limited N H Chua stated that the acquisition of Indonesian P.T. Gamat Utama was a stepping stone in the company’s Asian Distribution strategy. He added that the company continues to establish and develop Bioxyne’s business in other significant Asian markets. 

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Further, BXN’s announcement informed that Bioxyne needs to capitalize the Indonesian company up to $900,000 in order to adhere with Indonesian foreign investment PT PMA regulations.

Last year Bioxyne inked an acquisition deal with AVSA international to allow the sale of its products in Thailand, Myanmar, Cambodia, Philippines and Mauritius.

Despite announcing the expansion into Asian market, Bioxyne witnessed a heavy downfall in its share price. BXN’s stock fell by 5.128% to $0.037 on 26 September 2018 (6:03 PM AEST). The stock has seen a performance change of 44.44% over the past one year but the change has turned to negative 26.42% in the last three months.

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