Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo; President and CEO: Kenichi Hori) decided to subscribe convertible bonds with an aggregate principal of JPY 100 billion issued by PT CT Corpora ("CT"), the holding company of CT Corp, an Indonesian conglomerate. Mitsui and CT will enter into a subscription agreement for the convertible bonds later today.
CT Corp is an Indonesia-based, local-grown conglomerate, operating in consumer-related businesses including financial services, retail, media, property, hospitality, entertainment and lifestyle, with extensive reach to Indonesian consumers through its diverse portfolio. Indonesia, with ASEAN's largest population of 270 million, is projected to see a continuous expansion of middle-income consumers, where the digital-native generations (younger generations of Millennials and Generation Z) will account for the largest consumer segment. CT's strength is in its diversity, synergy within its businesses, and agility. This is evident in their resilience and swift countermeasures against the changes of business environment as a result of COVID19, while also adapting their strategy towards building digitalized platform to cater to the needs of the younger generations along with strengthening collaboration within it's group companies.
The convertible bonds will consist of two tranches denominated in JPY 67 billion and JPY 33 billion, where the JPY 33 billion tranche replaces the existing corporate bond of the same amount issued by CT which Mitsui had subscribed to in November 2018. The convertible bond structure provides mutual benefits, serving as a downside protection as well as multiple options to realize upside potentials in CT's future growth trajectory, including a possible future public listing. Upon subscribing to the convertible bonds, Mitsui will commit to CT's business growth and evolution through the dispatch of commissioner, director and secondees to provide expertise in driving CT towards becoming a multinational company. Mitsui also aims to contribute in accelerating CT's growth in the consumer-related industries through joint businesses which leverage Mitsui's proven business development capabilities. The closing of the convertible bond subscription has not yet been completed, and is subject to fulfillment of mutually agreed conditions precedent, which is expected to be in the 2nd quarter of this fiscal year.
In Mitsui's Medium-term Management Plan, "Market Asia" is identified as one of our key strategic focuses. Mitsui aims to build a new pillar of business avenue in Asia, the world's growth engine. The strategic alliance with CT is a flagship venture aimed to establish a "Consumer Ecosystem" in order to capture the high growth potential of the Asian consumer market. Mitsui will contribute to increase CT's corporate value, while also leveraging our comprehensive capabilities to enhance the quality of life of Indonesian consumers.
Further, interest income on these convertible bonds has been included in the full year consolidated plan for the year ending March 2022, announced today i.e. April 30, 2021.
Overview of PT CT Corpora
|Name of Company||PT CT Corpora (Holding company)|
|Head Office||Jakarta, Indonesia|
Overview of CT Corp (Group)
|Business Activities||Consumer-related businesses including financial services, retail, media, property, hospitality, entertainment and lifestyle|
|Sales||IDR 46.4 trillion (approx. JPY 350 billion) / Fiscal Year ended December 2019|
|Total Assets||IDR 181.4 trillion (approx. JPY 1.36 trillion) / As of December 31, 2019|