MPMX completes divestment of lubrication activities

Bisnis.com JAKARTA – Pt. Mitra Pinasthika Mustika Tbk. has just completed the process of selling 100% of the company's lubricant business to Esso Petroleum Company Limited and ExxonMobil UK Limited for a total value of 436 million US dollars.

The issuer of the stock code MPMX publishes a lubricants company under the federal brand PT Federal Karyatama (FKT) on ExxonMobil. Mitra Pinasthika Mustika and ExxonMobil date from June 28, 2018.

The Act stipulates all conditions of sale and purchase, including the approval of the Board of Directors and Commissioners of the company, the approval of shareholders obtained by the general meeting. Extraordinary Shareholders (EGMS) held on June 6, 2018, as well as the approval and notification to all authorized agencies.

Rudy Halim, CEO of MPMX Group, said that ExxonMobil is a global oil and gas company that will manage FKT well. With this transaction, FKT is expected to achieve a vertical integration that boosts growth.

"FKT is a market leader in automotive lubricants with the first brand Federal Oil and Federal Car. This transaction will allow FKT to enter new markets," he said in Jakarta Friday (29/6/2018).

After being taken over by ExxonMobil, FKT will still be a partner of MPMX, particularly in the distribution, sale and marketing of its products. After the transaction, Rudy said that MPMX will continue to focus on conducting the company's business so that it can give value to shareholders in the form of capital appreciation and distribution of capital. dividends consistently.

Strengthen existing business by increasing the ability of the company to invest in the rapid growth of mobility .

With this transaction, the company aims for a 10% growth in EBITDA by 2018.

Operational cash flow to remain positive. In the first quarter of 2018, the company's cash flow increased to Rs.1300 billion.

Since last year, MPMX has focused on streamlining activities to accelerate its activities. The Company pursued several reduction attempts such as the sale of a 20% stake in MPM Finance leaving 40% remaining and reducing dealer MPM Auto