Singapore’s Gallant Venture is reported to have signed a conditional purchase agreement for a majority stake in PT Indomobil Sukses Internasional, Indonesia’s second largest vehicle distributor.
The agreement calls upon Gallant Venture to purchase a 52.35% stake in the Indonesian company for SGD988.2m (US$810m) from PT Cipta Sarana Duta Perkasa. Under Indonesian corporate law, the Singapore company will also be compelled to buy all outstanding shares in the company soon after the initial acquisition of a majority stake is completed.
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Gallant Venture is 53.4% owned by Salim Group, an Indonesian conglomerate which previously owned PT Indomobil Sukses Internasional during Indonesia’s Suharto era. Salim was forced to give up control of the company during the Asia financial crisis in the late 1990s.
The Indomobil group is well exposed to the booming Indonesian automotive market. It distributes well established brands such as Suzuki, Nissan, Volkswagen, Audi and Volvo and also has minority stakes in the manufacturing operations of these brands. It also has wholly owned automotive insurance, rental and leasing and finance companies.
