22 September 2015
Flash Note : Joint Venture between PT Modern Internasional Tbk (“MI”) and Credit Saison Co Ltd (“CS”)
Modern Internasional (“MI”) has entered into a joint venture with Credit Saison of Japan (“CS”) to set up a multi-finance company named PT Saison Modern Finance (“SMF”) in Indonesia. OJK ( Financial Services Authority) issued the business license to operate this multi-finance company on 17 September 2015. MI subscribed to a minority position of 30% in the joint venture. The JV will have a paid-up share capital of Rp100 billion. SMF is Credit Saison’s first overseas consolidated subsidiary established with President Director and President Commissioner from CS Japan.
The JV is established for the main purpose but not limited to of supporting the expansion of 7-Eleven franchise business. In the initial phase of the business, the JV will provide finance lease at an attractive cost for the equipments installed at 7-Eleven stores particularly for the new sub-franchisees to be secured in the future. MI believes that this will reduce cost of capital for a new store opening and hence enhance the attraction of its 7-Eleven sub-franchising model. The JV also aims to develop payment products such as pre-paid cards for the customers of 7-Eleven by leveraging on CS’ strength as the 3rd largest credit card issuer in Japan.
The JV is committed to provide attractive IDR denominated leasing terms. MI does not expect significant impact on its immediate term financials from its investment in the JV. However, MI expects that the JV will contribute positively to the development of the 7-Eleven sub-franchising business as well as improvement in 7-Eleven's customer relationship management through its prepaid card and loyalty programmes.
A brief about Credit Saison Co Ltd
CS was founded in 1951 in Japan , an operator of department stores specialized in installment selling. Today, CS issues credit cards known as Saison Card and has over 35 million cards in circulation. CS also has a joint venture with Seven & I Holdings for the issuance of Saison Card. Mizuho is the largest shareholder of CS with 13% stake. In addition to Indonesia, the company operates overseas offices in China, Vietnam & Singapore, and is seeking to further expand its business in the rapidly-growing Asian market.
Investor Relation Division
PIC : Tina Novita
PT. Modern Internasional Tbk
JL Matraman Raya No 12, Jakarta 11350
Phone 021 -2801000 ext 753