Jakarta, 30th April 2018 – PT Mitra Pinasthika Mustika Tbk (IDX Ticker: MPMX, the “Company”) and ExxonMobil (“EM”) have signed a conditional sale and purchase agreement with EM to divest all of the shares owned by MPMX in PT Federal Karyatama (“FKT”) at Closing which is subject to conditions including relevant regulatory and shareholders’ approval (the “Transaction”).
FKT celebrates its 30th year legacy this year. FKT has grown to become a market leader in 2W lubricant business in Indonesia. It owns the Federal Oil brand and a portfolio of products including 4W lubricants under the Federal Mobil brand. Recently, FKT commenced the commercial operations of its new best-in-class blending, bottling, and warehouse facilities in Cilegon which will enable FKT to lower the costs of production and handling and increase production capacity in anticipation of further growth to its business. FKT continues to receive various awards and recognition from the industry including Best Company to Work For in Asia from the HR Asia Awards 2017, Indonesia Best Brand Award (IBBA) from SWA magazine and the country’s leading research company MARS.
“This Transaction is consistent with our goals of unlocking value for shareholders and accelerating our strategic initiatives to transform MPMX’s business as a whole into sustainable “smart mobility” platform powered by artificial intelligence and blockchain technology capabilities. This Transaction will also allow us to further strengthen our balance sheet as we have done in the last two years including reduction of cost of funds and generation of positive and growing operating cash flows. A certain portion of the proceeds of the Transaction will be reinvested into expanding our existing portfolio of businesses in order to capture previously untapped growth. We will also embark on strategic acquisitions that will allow us to accelerate our transformation as well as to enlarge our EBITDA. This Transaction will enable MPMX to secure a faster growth path forward so that we could create even greater value to our shareholders,” said Rudy Halim, Group CEO of MPMX. “Under the stewardship of EM, a global oil and gas company with a long-standing reputation for excellence and 120-year history in Indonesia, we are confident that FKT has found a new home to build on its own legacy and bring the whole business to the next higher level by combining its market leadership and strong channel management with EM’s global expertise, resources and reach to better serve customers in Indonesia.”
The transaction is subject to relevant regulatory and shareholders’ approval, and expected to close within 2018. Post-closing MPMX expects to continue its relationship with FKT in the distribution of its products and by offering its platform capabilities.
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