In a strategic move to enhance its business portfolio and reinforce its commitment to sustainable growth, Mitsubishi Chemical Group Corporation has recently announced the decision to transfer shares of its subsidiary, PT Mitsubishi Chemical Indonesia (MCCI). The shares will be transferred to PT Lintas Citra Pratama, a company with plans to commercialize paraxylene, a key raw material for pure terephthalic acid (PTA) in South East Asia.
Reasons for Share Transfer: MCCI, a company established in 1991, has been a major player in the Indonesian PTA market, contributing significantly to the production of polyester products such as fibers, PET bottles, and films. Despite the stability and strength of Indonesia’s PTA market, Mitsubishi Chemical Group has continuously evaluated its business direction, aligning with its management policy of “Forging the future” through portfolio management focused on market growth, competitiveness, and sustainability.
Affiliates of PT Lintas Citra Pratama presented a compelling proposition to Mitsubishi Chemical Group, expressing their intention to operate the PTA business through vertical integration from raw material paraxylene to PTA. This integration is anticipated to strengthen MCCI’s competitiveness, and the company is expected to continue its development and growth under the new ownership structure.
Outline of the Share Transfer:
1. Details of PT Mitsubishi Chemical Indonesia (MCCI):
- Name: PT Mitsubishi Chemical Indonesia (MCCI)
- Business: Manufacture and sales of pure terephthalic acid (PTA)
- Capital: $146.3 million
- Establishment: March 4, 1991
- Major Shareholders: Mitsubishi Chemical Corporation (MCC) 99.9%, PT Lintas Buana Kasei (LBK) 0.1%
- Business Results (Past Three Years):
- Total Capital: $181 million (2021), $190 million (2022), $173 million (2023)
- Sales Revenue: $245 million (2021), $415 million (2022), $455 million (2023)
- Net Income Before Tax: $5 million (2021), $3 million (2022), -$4 million (2023)
2. Details of PT Lintas Citra Pratama:
- Business: Investment and Trading Company
- Major Shareholders: Polychem Capital Limited (99%)
- Relationship with Mitsubishi Chemical Group: Not applicable (as the company is scheduled to be established)
3. Share Transfer Details:
- Number of Shares Before Transfer: 1,463,000 (100% voting rights)
- Number of Shares to be Transferred: 1,170,400
- Transfer Price: Undisclosed
- Number of Shares After Transfer: 292,600 (20% voting rights)
4. Schedule:
- Date of Resolution: December 22, 2023
- Date of Share Transfer Agreement: December 22, 2023 (Scheduled)
- Execution Date of Share Transfer: March 28, 2024 (Scheduled)
5. Future Outlook:
- The impact of the share transfer on business performance is under review.
- Mitsubishi Chemical Group will promptly announce any significant future impacts on its business performance.