JAKARTA (TheInsiderStories) – Siam Cement Group (SCG), one of the leading business conglomerates in Southeast Asian become a strategic shareholder in Indonesia’s PT Catur Sentosa Tbk Adiprana (IDX: CSAP) via rights issue, said the company on July 16.
SCG Retail Holding Company Limited, a subsidiary in business cement-building materials entered CSAP through the capital increase without preemptive rights with the amount of Rp 324 billion (US$22.66 million), or at a price of Rp 800 per share. Last May, CSAP has announced to increased equity through right issues in 405,305,292 shares or 10 percent the issued and fully paid in capital.
It said, the proceeds from this rights issue will be used primarily to accelerate the growth of Mitra10, which is brand of modern retail store building materials and Atria is home improvement unit in Indonesia.
Roongrote Rangsiyopash, President and CEO of SCG said that, “SCG saw the potential and opportunities in the Indonesian market on modern trade and retail business sectors that offers home renovation products to serve the growing customer demand.”
Meanwhile, CEO of CSAP Budyanto Totong welcomed SCG as a strategic investor in Mitra10. This investment, he continued, reflects the confidence and the prospect of strong fundamentals of the CSAP growth in Indonesia.
Furthermore, he stated, this partnership enables the management CSAP to develop modern retail business and focus on aggressive expansion Mitra10 to have 50 stores in 2021 as well as a focus on sales and net profit growth.
Three biggest shareholders CSAP are PT Buanatata Adisentosa, NT Asian Discovery Master Fund, and Albizia ASEAN Opportunities Fund. The shareholders commitment for this right issues shown their positive support and believe to CSAP’s strategy on Mitra10’s potential to grow in long term.
As now, the company is operating over 42 distribution center of building materials, 4 distribution center of chemical, 17 distribution center of consumer goods, 25 stores of Mitra10 and 10 stores of Atria.
Beside entered retail market, SCG has plan to develop a mega petrochemical project with an estimated investment of $5.5 billion in Cilegon, Banten province. The development of the petrochemical plant is expected to reduce downstream industry’s dependence on imported petrochemical raw materials.
At the meeting with SCG, Industry Minister Airlangga Hartato urged the project will become the largest petrochemical project to be built in Indonesia as well as Thailand. The SCG investment is a form of cooperation between the group and PT Chandra Asri Petrochemical Tbk (IDX: CAPC). At present Siam Cement holds 30 per cent stakes in Chandra Asri. The new plant is expected would commence production by 2022.
Written by Staff Editor, Editing by Linda Silaen, Email: email@example.com