KUALA LUMPUR: Pecca Group Bhd has proposed to acquire 80% equity interest in PT Gemilang Maju Kencana (GMK) for a total purchase consideration of 6.4 billion rupiah (RM1.87mil).
The automotive leather upholstery maker said its wholly owned subsidiary Pecca Leather Sdn Bhd (PLSB) had entered into a shares transfer agreement with various parties for the acquisition.
Upon completion of the acquisition, PLSB will inject 2.4 billion rupiah (RM703,200).
A filing with Bursa Malaysia showed that the agreement was signed between PLSB, PT Multi Berjaya Asindo (MBA), CSC Automotive Sdn Bhd (CSC Automotive), and Tan Kim Cheang.
Pursuant to the shares transfer agreement, PLSB has also entered into the shareholders agreement and collaborative agreement with Neo Hwee Leong and Herny Pramana.
Neo is the general manager of GMK and Herny is the head of the finance department of GMK. The duo will provide support for the business activities of GMK and to PLSB, in the form of secure business and technical support.
“This acquisition represents a significant opportunity for us to penetrate and establish ourselves in the Indonesian market, and we are fully committed to materialising this deal for the long-term success of our company,” Pecca chief executive officer Foo Ken Nee said.
"As Pecca continues to expand its foreign presence in the automotive industry, Indonesia is poised to be a key driver of our growth. Our forthcoming physical presence in the country positions us for an upward growth trajectory, as Indonesia currently boasts the highest vehicle sales figures of any Southeast Asian market.
“Recent market data indicates that Indonesian vehicle sales for the January-August 2022 period reached 658,232 units, surpassing Thailand and Malaysia during the same period. We are thrilled to leverage these opportunities to expand our reach and reinforce our market position in the region," he added.