Jakarta, July 16, 2018, PT Catur Sentosa Adiprana Tbk. (Code of Stock: CSAP) hereby announces that it has entered into conditional agreements with the SCG, one of the leading conglomerates in ASEAN, to become strategic shareholder in CSAP.
SCG enters into CSAP through SCG Retail Holding Company Limited, a wholly owned subsidiary of SCG in Cement-Building Materials Business, by subscribing Without Preemptive Rights (PMTHMETD) with a total amount of Rp 324 billion (at Rp 800 per share). The proceed of this PMTHMETD will be used mainly for accelerating growth of Mitra10, which is well-known brand name of Building Materials and Home Improvement Modern Retail store.
Mr. Roongrote Rangsiyopash, President and CEO of SCG said that "SCG sees the potentials and opportunities of Indonesian market in modern trade and retail business that offer home improvement products to serve the growing demands for customers. As CSAP is the largest and leading distribution company in building materials, SCG is proud to partner and build further sustainable growth of Indonesia together."
This partnership will allow both parties to exchange knowledge and experience as SCG has been in this business for over 100 years, not only in Thailand, but also ASEAN countries including Indonesia. Through the collaboration, CSAP and SCG can offer more values added that really address customers’ needs.
CSAP’s CEO Budyanto Totong explains, "We are very pleased to welcome SCG as a Strategic Investor. This investment reflects strong fundamental beliefs and prospects for CSAP growth in Indonesia. We will work together, synergize and integrate our Vision and Mission to improve performance in the face of increasingly competitive market challenges and rapidly changing customer’s needs.
The partnership allows CSAP Management to commit its modern retail business development and focus on aggressive expansion to have 50 Mitra10 stores by 2021 as it could serve the growing need of building materials for home renovation leading to greater sales and net profit growth. In the distribution segment, CSAP will strengthen performance of the building materials distribution by adding new principals, innovative products, Supply Chain Management and Inventory Management by implementing a good Warehouse Management System (WMS) to continuously create more efficient performance. Moreover, CSAP will increase Private Brand contribution of ceramic products and other products in Modern Distribution and Retail segment as well as Performance Delivery to serve the needs of customers.