Siam Cement to acquire stake of Mitra 10 operator

Siam Cement to acquire stake of Mitra 10 operator
Siam Cement to acquire stake of Mitra 10 operator

Siam Cement Group agreed to take a 29% stake in Indonesian home products retailer Catur Sentosa Adiprana in a move aimed at penetrating Indonesia’s fast-growing retail construction sector.

The Thai industrial giant’s acquisition is part of an overall strategy to expand into the cement and construction retail business via online marketing.

BANGKOK (infolog): President and CEO Roongrote Rangsiyopash said the deal is worth 2.4 billion baht ($72.2 million), with the transaction due to be completed by the third quarter of this year.

The group’s wholly owned subsidiary, SCG Retail Holding , will be the conduit for the transaction.

According to Siam Cement’s consolidated financial statement at the end of March 2018, the size of the deal equals 0.41% of total assets. When combined with other transactions over the past six months, this figure will hit 4.84%.

Catur Sentosa’s core businesses are distribution of building materials and retail sales of home products under the Mitra10 brand.

Mitra10 is Indonesia’s leading retailer of home products, with 27 locations in most of the country’s large cities. For its distribution business, Catur Sentosa’s network includes more than 30,000 traditional building materials retailers nationwide.

“Having a stake in [Catur Sentosa] allows SCG to further execute its penetration into the high-growth and vast Indonesian market. Moreover, the investment will gain further synergy with SCG’s existing assets in Indonesia,” Roongrote said.

Catur Sentosa is listed on Indonesia’s stock exchange, with consolidated sales of 23.6 billion baht ($712.7 million) in 2017.

Siam Cement has invested heavily in Indonesia over the past several years, acquiring stakes in a petrochemical business, ceramic tile manufacturer and construction material distribution company. The group is a major player in Indonesia’s construction materials business. Siam Cement also has a cement plant in Indonesia with a capacity of 1.8 million tons per year.

In 2017, the group earned 175 billion baht from its cement and building materials business, up 3% from the previous year.

Roongrote said Siam Cement will continue focusing on countries in the Association of Southeast Asian Nations, where revenue totaled 106 billion baht last year.

Recently, the group formed a joint venture with Taiwanese electronics manufacturer and key Apple supplier Hon Hai Precision Industry, better known as Foxconn, to set up an integrated logistics and supply chain in south China, looking to tap into the region’s growing e-commerce.

Siam Cement posted total revenue of 482 billion baht in 2017, with assets of 573 billion baht.

For 2018, the group has earmarked 60 billion baht for investments, including mergers and acquisitions at home and abroad. (

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