News

The Board of Directors of APMAH wishes to announce that PT. APM Automotive Indonesia (“PTAAI”), an indirect wholly-owned subsidiary of the Company, had on 26 June 2020 entered into a joint venture (“Proposed Joint Venture”) with Hyundai Transys Inc. (“TRANSYS”) to manufacture and supply automobile seats and its related parts and components (“Products”) to PT Hyundai Motor Manufacturing Indonesia (“PTHMMI”) through PT. Hyundai Transys Indonesia (“HTI”).

The Proposed Joint Venture arose out of PTHMMI’s initiative that TRANSYS and PTAAI enter into a joint venture to support the PTHMMI’s operations in Indonesia as PTHMMI is building a plant in Cikarang, which is expected to be fully operational in the second half of 2021 with an annual capacity of 150,000 units of automobile vehicles, where half of the output would be exported to the neighbouring countries in South East Asia.

In connection with the above, PTAAI agreed to acquire 50% of all the issued and paid-up share capital of HTI and sell a piece of land to HTI and PTAAI entered into the following agreements:

1. Joint Venture and Shareholders’ Agreement (“JVSA”) with TRANSYS and HTI, to record the understanding reached between the parties on the terms and conditions of the Proposed Joint Venture;
2. Shares Sale and Purchase Agreement (“SSPA”) with TRANSYS and Hyundai M.Seat Co., Ltd. (“MSEAT”), where PTAAI shall acquire at par value 499 shares from TRANSYS and 1 share from MSEAT, which in the aggregate comprise 500 shares amounting to 50% of all the issued and paid-up share capital of HTI at a total cash consideration of USD500,000 (equivalent to RM2,174,000), and subject to the terms and conditions stipulated in the SSPA; and
3. Conditional Land Sale Agreement (“CLSA”) with HTI where PTAAI shall sell and transfer all that piece of industrial land owned by PTAAI measuring approximately 25,788 m² (twenty-five thousand seven hundred eighty-eight square meters) and located in the Greenland International Industrial Center, Block CD No. 7A, Pasir Ranji Village, Cikarang Pusat Subdistrict, Bekasi Regency, Province Jawa Barat, within the area of Kota Deltamas at a cash consideration of IDR76,920,360,000, including Value Added Tax (equivalent to RM22,538,000), to HTI for the purposes of establishing a plant for manufacturing the Products.

Please refer to the attachment for the details.