Kiwi infant formula stock Bioxyne has acquired a majority ownership in an Indonesian sales company, expanding its Asian distribution footprint.

Bioxyne shares skyrocketed in December after it first anounced a move into baby formula targeted at South East Asia (see share price graph below).

The shares lost all those gains this year — but have been rising again since last week.

Today Bioxyne (ASX:BXN) announced it had paid $121,000 up front for 95 per cent of P.T. Gamat Utama — an Indonesian direct sales business with 2,500 members. It distributes a range of health products and supplements.

Bioxyne told investors that Indonesia’s 267m-strong population and growing middle class would provide Bixoyne access to a market “valued at in excess of $1 billion and growing”.

“This is a key milestone in our Asian distribution strategy,” Bioxyne chief N H Chua said. “We are continuing to work on establishing Bioxyne in other key Asian markets.”

Bioxyne shares (ASX:BXN) have declined since an initial burst in December when it moved into baby formula

On top of the initial payment, PTG will receive a further $44,000 if revenue from existing sales exceeds $450,000 over the coming year.

Bioxyne will be required to capitalise PTG up to an equivalent amount of $900,000 to comply with Indonesian foreign investment regulations, the company said.

Mr A Uun Ahmad is the vendor and remains the 5pc minority shareholder.

BXN shares jumped 36pc to 6.6c earlier this year when the company signed a similar deal with AVSA International, which allowed for the sale of Bioxyne products to Thailand, Philippines, Myanmar, Cambodia and Mauritius.