Jakarta – The Company on October 2014 has entered into an agreement with CIMBPE for CIMBPE’s investment of 10% equity stake in the Company for a total consideration of approximately USD25 million. This follows after the Company obtained its shareholders’ approval at an EGM carried out in July 2014 for the non-preemptive share issuance of up to 10% new ordinary shares.
The Company, via its subsidiary – PT Modern Sevel Indonesia (“MSI”), is the master franchisee of 7-Eleven for Indonesia. MSI currently has 175 7-Eleven stores opened in Jakarta. The participation of CIMBPE provides the Company an impetus to grow its 7-Eleven store network.
Partnership Agreement Signing between PT Modern Internasional Tbk by Mr Sungkono Honoris ( President Director) and CIMBPE by Mr Kenny Kim (Group Chief Financial Officer and Chief Executive Officer of Group Strategy and Strategic Investments, CIMB Group)
Announcing the partnership, Henri Honoris, President Director of MSI, “CIMB Group has been a long term partner for the Company in many areas, especially in supporting the Company in growing its 7-Eleven business. This partnership has escalated to a higher level with CIMB becoming [one of its largest minority shareholder], reflecting the strong confidence in 7-Eleven’s prospects in Indonesia and Company’s ability to expand the business.
This strategic partnership will further strengthen the business ties between 7-Eleven and CIMB Group and further enhance mutual benefits. PT Bank CIMB Niaga Tbk (“CIMB Niaga”) has extended its products and services including ATM machines, EDC and digital mobile payment for the Company’s 7-Eleven business. Currently, there are  CIMB ATM machines and  CIMB EDC installed in 7-Eleven stores located in Jakarta. Both 7-Eleven and CIMB Niaga also carry out frequent joint marketing and promotion campaign through various fresh food and beverage offerings to their customers.
Commenting on the acquisition, Kenny Kim, Group Chief Financial Officer and Chief Executive Officer of Group Strategy and Strategic Investments, CIMB Group said, “We are excited with this opportunity to support our long-term business partner PT Modern Internasional as they continue to grow the 7-Eleven franchise in the attractive Indonesian retail space. The Company and our Indonesian subsidiary, CIMB Niaga, have been long-term synergistic partners, with CIMB Niaga providing full support in various facets of the Company’s business. This investment strengthens our business relationship and further cements our support for the Company’s business, which is another testament of our commitment to providing a viable third asset class via private equity to help our partners grow”.
Henri added “There is potential for both 7-Eleven and CIMB Niaga to further explore opportunities to grow their respective businesses through this strategic partnership including providing franchise financing. The partnership also contributes to the growth of the country indirectly by enabling SMEs to distribute their products through more 7-Eleven stores as well as obtaining financial advice and support from CIMB. Both parties will explore further opportunities once this transaction is completed.”
A brief about CIMBPE : CIMBPE, a wholly-owned subsidiary of CIMB Group, is a business within the CIMB Group Strategy and Strategic Investments Division set up to bring CIMB Group’s financial expertise, experience and network into the sphere of alternative investments, including private equity, real estate, infrastructure and special situations. CIMBPE manages over RM6 billion in invested and committed capital as at 31 December 2013
A brief about the Company : The Company is the master franchisee for 7-Eleven in Indonesia. The 1st 7-Eleven store was opened in Jakarta on 7 November . With a total of 175 stores currently, 7-Eleven contributes over 60% of the Company’s revenue. In Indonesia, 7-Eleven is positioning itself as “Food Store Destination” 7-Eleven through its offering of more fresh food and beverages products, with a focus on meeting the needs of Jakarta people for Fresh Ready To Eat – Delicious – Safe and Hygienic – at affordable price for their daily conveniences.
For more Information please contact :
PR Manager PT Modern Internasional Tbk.
Telp. (021) 2801000 Ext. 460 Email: firstname.lastname@example.org
Investor Relation Manager PT Modern Internasional Tbk.
Telp. (021) 2801000 ext. 753 Email: email@example.com