JAKARTA. Shandong Heavy Industry Group (SHIG), a Chinese heavy equipment and truck manufacturer, has signed a joint venture (JV) agreement with one of subsidiaries of PT MNC Kapital Indonesia Tbk (BCAP), MNC Leasing.

Said agreement was signed directly by SHIG’s subsidiary, Sinotruk. With this agreement on hand, Sinotruk will gain control over 40% of MNC Leasing.

The capital spent by Sintoruk for this corporate action is IDR 274 billion, which is equal to twice of MNC Leasing’s book value.

Hary Tanoesoedibjo, Executive of MNC Group, said that the collaboration with Sinotruk will generate significant business growth for MNC Leasing. “MNC Group will also continue to support and share significant collaborative value to Sinotruk, thus allowing them to move forward sustainably,” he added in the official disclosure.

After signing the JV agreement, the fresh capital obtained by MNC Leasing will be used for office network expansion, particularly for offices neighbouring mining areas.

In addition, the funds raised by MNC Leasing will also be utilised to enhance capital structure, as well as opening opportunities to secure extra funding from international partners. (KR/ZH)