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April 3 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings stated that plans for a merger between PT Mustika Pinasthika Finance Partners (MPM Finance) and PT Sasana Artha Finance (SAF) does not have an impact on the national ranking Period The length of the MPM Finance at ’ A-‘/Stabil. (idn) This reflects Fitch’s expectations will be ongoing support from its parent company--PT Mitra Pinasthika Mustika (MPM; ’ A (idn) ‘/Stabil).
MPM Finance is a company that focuses on financing multifinance car the former, while the SAF’s focus on the financing of the motor. the 60% stake owned by SAF MPM and 40% owned by JACCS co., Ltd., a company based in financing Japan with the core business in the consumer credit (credit cards and financing the consumer). JACCS will deposit capital amounting to 510 billion rupiah to be a 40% stake holder’s MPM Finance after the merger. MPM will remain the holder of the majority stake with 60% ownership of the MPM Finance.
This Merger is part of a strategy to strengthen its position in the MPM business automotive, enlarging the economies of scale, cost efficiency, business monitoring efficient, synergy business and product diversification.
After the merger transaction is carried out, the company will still be called MPM Finance, and still will be a subsidiary with an interest strategic for MPM MPM share ownership, although reduced to 60% of the 100%. Fitch believes the operation MPM Finance will remain supported by MPM has the automotive distribution business has strong enough.
JACCS will engage actively in operational and management MPM Finance with pointing out a few key executives. Technical and financial support of JACCS will provides benefits of credit profile MPM Finance. Fitch will examine back rank MPM Finance based on support, in line with the development of the structure of stock ownership with the potential support of JACCS In addition to the ongoing support of MPM.
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