ORIX To Acquire Independent Indonesian Auto Loan Company
Sep 16, 2015
TOKYO, Japan – September 16, 2015 - ORIX Corporation (“ORIX”) announced today that it will acquire an independent Indonesian auto loan company, PT. Sinar Mitra Sepadan Finance (“SMS.”) By October 2015, ORIX plans to purchase 85% of SMS’s outstanding shares, which is also the regulatory upper limit to what a non-Indonesian company can invest in an Indonesian company. ORIX has already obtained relevant approvals from the Indonesian regulatory authority.
ORIX made inroads in Indonesia in 1975 and began equipment and auto leasing businesses toward large companies and small to mid-size enterprises. ORIX will leverage the acquisition of SMS to expand its operations into the auto loan business in order to diversify financial services it offers in Indonesia.
SMS was founded as an independent auto loan company in 2000 under the management consisting primarily of former bankers, with customer base built on sole proprietors and individual customers. SMS manages dispersed loan portfolios of smaller loans and has a nation-wide network with 106 branches that primarily handle Japanese minivans and trucks which in general have a more stable price in the used car market. Going forward, ORIX will support further growth of SMS by leveraging its auto leasing expertise and distribution channels.
Indonesia has the fourth largest population in the world and its middle class has been growing in accordance with the country's economic growth. However, the automobile penetration rate in Indonesia is only at around 8% which is lower than neighboring South East Asian countries. Indonesian auto loan markets are expected to expand in the future as the penetration of automobiles further increases.
ORIX, since its entry into Hong Kong in 1971, has expanded its financial services businesses overseas. Today, ORIX has 544 offices, etc., in 35 countries and regions. In the coming years, by leveraging ORIX's knowhow cultivated in the past, ORIX will strive to further expand and diversify its businesses.
|Company name||PT. Sinar Mitra Sepadan Finance|
|Address||Wisma Millenia, JI.MT.Haryono Kav. 16, Jakarta 12810, Indonesia|
|President Director||Rudyanto Somawihardja|
|Established in||November, 2000|
|Business contents||Used car loans for sole proprietors and individual customers|
|Total assets||Approximately 40 billion yen|
|Number of employees||Approximately 2,000|
|Number of branches||106 branches|
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group that provides innovative products and services to its customers by constantly pursuing new businesses. Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into the lending, investment, life insurance, banking, asset management, automobile-related, real estate and environment and energy-related businesses. Since its first overseas expansion into Hong Kong in 1971, ORIX has spread its business globally by establishing locations in a total of 36 countries and regions across the world. Moving forward, ORIX aims to contribute to society while continuing to capture new business opportunities. For more details, please visit our website: http://www.orix.co.jp/grp/en/
Caution Concerning Forward-Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2014 - March 31, 2015."
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