KUALA LUMPUR: Automotive upholstery supplier Pecca Group Berhad has completed a deal to acquire an 80% stake in PT Gemilang Maju Kencana (GMK), which supplies upholstery leather wrapping and seat covers to the Indonesian automotive industry.
On March 10, 2023, Pecca announced that Pecca Leather Sdn Bhd (PLSB), a wholly-owned subsidiary of Pecca, had signed Shares Transfer Agreements with PT Multi Berjaya Asindo, CSC Automotive Sdn Bhd and Tan Kim Cheang, for the acquisition of 80% equity interest in GMK. Leather Polyurethane Coating
The acquisition, which was subject to the fulfilment of regulatory conditions, is now deemed complete following approval from the Minister of Law and Human Rights of the Republic of Indonesia on the transfer of rights of the shares to PLSB.
GMK is a company associated with Indonesia’s PT. Multi Pratama Interbuana Group (MPI). GMK’s principal business activity is the supply of upholstery leather wrapping and seat cover for the automotive industry in Indonesia.
An industrial manufacturing group based in West Java, MPI was established in 1998. MPI provides industrial automation services to automotive and electronics companies. It also produces plastic injection molds used in the automotive and electronics supply chain.
Pecca Group Berhad CEO Foo Ken Nee said: “Completing this acquisition unlocks the next chapter of our international expansion plan. Indonesia, with its massive automotive market and growing economy, promises to be a key driver of Pecca’s growth.”
Foo noted that Indonesia has a population of 281 million people, along with the highest vehicle sales figures of any Southeast Asian market.
Fitch Ratings, a research firm, expects sales of four-wheeled vehicles in Indonesia to hit one million units in 2023. Monthly vehicle sales in Indonesia hit 100,000 units in March 2023, according to statistics compiled by MarkLines, an industry data provider. Malaysia and Thailand each recorded March 2023 vehicle sales of around 80,000 units, respectively. Indonesia also has a growing vehicle export business, with the government reportedly projecting exports of between 400,000 and 500,000 units in 2023.
“Our stake in GMK will accelerate the process of establishing our presence in this very exciting market,” Foo said.
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