SEOUL, South Korea, Oct. 11, 2023 /PRNewswire/ -- Hyundai Capital Services, a financial services subsidiary of Hyundai Motor Group, today announced that it is acquiring PT Paramitra Multifinance, to establish Hyundai Capital Indonesia.
Signing Ceremony held in Jakarta on October 5, 2023. (from left to right) Jaesub Sung, Head of Global Business Development / Department at Hyundai Capital Services / Daeyoung Han, Head of Business Support Division at Hyundai Capital Services / Indra Widjaja, Chairman of Sinar Mas Multiartha / Jinwon Mok, CEO of Hyundai Capital Services / Hyunghoe Koo, President Director of Bank Shinhan Indonesia / Haechang Lee, Head of Global Division at Shinhan Bank HQ
Hyundai Capital Services has entered into a share purchase agreement to acquire 75.1% stake in PT Parmitra Multifinance. PT Sinar Mas Multiartha Tbk (15%), the finance arm of Sinar Mas Group, and PT Bank Shinhan Indonesia (9.9%), a subsidiary of Shinhan Bank Korea, will each be minority shareholders of the Company.
PT Sinar Mas Multiartha Tbk will provide its local experience and expertise to assist in the strengthening and development of auto financial services business. PT Bank Shinhan Indonesia which was established in 2015, will be in charge of enhancing the competitiveness of local products and provide stable financing operations.
Indonesia is a key hub for the Hyundai Motor Group's future mobility strategy. In 2022, Hyundai Motor opened its first Southeast Asian production base in Indonesia, and since then, Hyundai Motor has been claiming the biggest market share in Indonesia's electric vehicle market.
Since 2020, Hyundai Capital Services has been operating a branch in Jakarta, providing financial consulting and market research services. Indonesia's financial sector is highly attractive for Hyundai Capital Services given its demographics, strong macroeconomic and fast growing economy. The newly launched entity is a significant milestone for Hyundai Capital Services and demonstrates the company's confidence in Indonesia and long-term commitment to the market.
"Hyundai Motor has come in at the top of the electric vehicle market in Indonesia," said Hyundai Capital Services spokesperson. "We believe this acquisition will position Hyundai Capital to leverage our capabilities to serve more tailored auto financial services to the needs of local customers and partners."
Hyundai Capital Services is now active in 14 countries in the Americas, China and Europe, operating 16 entities and 2 branches globally. The company plans further expansion with the aim to support Hyundai Motor Group's global mobility strategy.
Hyundai Capital Services
Hyundai Capital, a leading consumer finance company founded in 1993, has been offering financial services tailored to meet the needs of Hyundai, Kia and Genesis brands globally. Spearheading the globalization of Korea's finance sector, Hyundai Capital, headquartered in Seoul, South Korea, is now active in 14 countries in the Americas, China and Europe and plans further expansion.
Bank Shinhan Indonesia
Shinhan Bank entered the Indonesian market in 2015 through the acquisition and merger of two local banks, currently operating 37 branches across Indonesia. In particular, it has received recognition for its rapid success in localization, achieving assets of $1.573 million by the end of the first half of the year, marking a remarkable asset growth of nearly 560% compared to the end of 2016 when the acquisition took place.
