SCGP has announced completion of the 75% share acquisition of Intan Group, a leading producer of corrugated containers in Indonesia, with a customer base of companies in the food and beverages and consumer goods industries. This transaction expands on the entire range of production, supply chain and packaging development from upstream to downstream in response to an expanding ASEAN market. Revenue recognition begins in August this year.
Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP reports that the Company has continuously invested in the ASEAN region. Indonesia is one of the countries with a long-term growth potential, and SCGP has a strategic interest in expanding its fiber-based packaging business there following its presence in the country since 2013 to cover all facets of packaging operations in order to fiber-based packaging development. The Company currently has interests through investment in five subsidiary companies in Indonesia.
Most recently, on August 13, 2021, SCGP has announced the completion of its 75% merger and partnership (M&P)investment in PT Indonesia Dirtajaya Aneka Industri Box, PT Bahana Buana Box and PT Rapipack Asritama (collectively, "Intan Group") which follows the previous disclosure to The Stock Exchange of Thailand on May, 10, 2021.This transaction is through TCG Solutions Pte. Ltd. ("TCGS"), which is a wholly owned subsidiary of Thai Containers Group Company Limited (or "TCG"), a 70:30 joint venture between SCGP and Rengo Company Limited, Japan. Payment for the 75% M&P stake is the immediate 822 billion rupiah (approximately 1,997 million Baht), followed by the second payment which will be based on Intan Group's incremental financial performance for FY2022 and FY2023, and when combined with the first payment will be no more than the total of 859 billion rupiah (approximately 2,088 million Baht). Intan's financial performance will be consolidated from August 2021 onward.
Intan Group is one of Indonesia's leading corrugated containers producers and operates in 4 strategic locations, namely Surabaya in East Java, Semarang in Central Java, Bekasi in West Java, and Minahasa in North Sulawesi. Its clients are in the food, beverage and consumer segments.
Intan Group recorded revenue of approximately 1,329 billion rupiah (approximately 3,231 million Baht), core net profit after tax of approximately 65 billion rupiah (approximately 158 million Baht) and had assets of approximately 755 billion rupiah (approximately 1,836 million Baht) at the end of FY2020.
"Our increased investment in Indonesia will enable us to strengthen the production, research and development, and marketing as well as introduce a diverse range of products and complete packaging solutions to respond to the expanding ASEAN market. Moreover, it reaffirms our commitment and belief in Indonesia's strong economic growth," Mr. Wichan says.