JAKARTA, 28th June 2018
– Following the initial announcement and public disclosure with regards to material transaction made in 30th
April 2018 by PT Mitra Pinasthika Mustika, Tbk (IDX Ticker: MPMX
, or the “Company
”), Indonesia’s leading smart mobility company, today the Company announces the successful completion of a strategic divestment of its 100% stake in its lubricant business subsidiary, PT Federal Karyatama (“FKT
”) to Esso Petroleum Company, Limited and ExxonMobil UK Limited (“ExxonMobil
”) for a total consideration of US$436 million (Four Hundred Thirty Six Million US Dollar) (the “Transaction
The completion of the Transaction was marked by the signing of Notarial Deed of transfer of shares in Jakarta by and between the Company and ExxonMobil on 28th
June 2018, following the satisfaction of all conditions for the completion of the Transaction during the 2nd
quarter of 2018, including: (1) approvals by MPMX Board of Directors and Board of Commissioners, (2) approval by MPMX shareholders through Extraordinary General Meeting of Shareholders on 6th
June 2018, and (3) approvals from and notification to all relevant regulatory bodies.
“We are pleased to announce the completion of the transaction, and to welcome ExxonMobil, a global oil and gas company, as the new owner of FKT. FKT is a market leader in the automotive lubricant industry with its well-known brands Federal Oil
and Federal Mobil
and, after 30 years of establishment, we believe that FKT will be able to reach the next higher level by way of this transaction. We wish ExxonMobil and FKT the best with their plans as we are confident that this transaction will enable FKT to achieve a vertical integration in its value chain as well as trigger higher growth which will come from having new capabilities and tapping into new markets. We are excited that MPMX through its subsidiaries will continue to be involved as one of the most important business partner of FKT after completion by continuing to distribute, sell and market FKT’s products in certain key markets and providing its integrated “shared economics” platform and value proposition to FKT and their customers,” said Rudy Halim, Group CEO of MPMX.
Rudy continued by adding, “this transaction also reiterates our commitment to unlock value for our shareholders and deliver returns to shareholders in the form of both capital appreciation and superior dividend yield in a consistent manner. The return on capital will exceed the enterprise value of MPMX as a whole today. In the future, the proceeds of this transaction will also allow us to strenghten and grow the existing businesses and operations of MPMX and invest in new faster growth areas of mobility that will ensure at least 10% YoY growth in the group’s EBITDA as a whole from 2019 onwards and for the foreseeable future period barring any unexpected external circumstances. The Company’s focus on positive and operating cashflows also has helped MPMX to achieve a higher cash balance of around Rp1.3 Trillion as of 1Q18. Within this year, some of the proceeds from this transaction will also be used to pay down some of the Company’s debts to ensure that it maintains a productive use of excess cash in the business and to distribute dividend to shareholders.”
The transaction will accelerate the transformation of MPMX to ensure its ability to compete and generate sustainable superior profits for a long time in the future. Continuing the vision set in 2016, the Company has shifted its focus from pipeline to platform or ecosystem strategy, by concentrating its efforts to solve pain points and remove inefficiencies in the supply chain. The Company will continue to spend selectively on higher ROI capex, technology-enabled business models to support the Company to generate higher impact to its business ecosystem and stakeholders.
About PT Mitra Pinasthika Mustika Tbk
MPMX is a leading Indonesian company with a vision to positively impact lives through smart mobility and social integration. By collective power, MPMX aim to deliver the most relevant products and services to the people in our ecosystems through innovation. MPMX’s businesses offer a broad spectrum of mobility solutions, from retailing and distributing motorcycles and cars, after-market parts and services, transportation and logistics services, and financial services. MPMX is Indonesia’s mobility ecosystem and we will continue to create smarter mobility solutions to help Indonesia integrate better than ever before.
For further information, please visit www.mpmgroup.co.id