Indonesia: CT Corp to seek investors for subsidiaries before considering IPO, says chairman

CT Corp Chairman and CEO Chairul Tanjung

CT Corp, one of Indonesia’s largest business conglomerates, aims to invite world-class investors to partner with all of its subsidiaries before it enters the IPO stage within five years, chairman and CEO Chairul Tanjung said.

“We want to be a global player who is among the best in the world, therefore we want to look for world-class investors and partners to expand CT Corp’s businesses. My target is that within five years we’ll be able to do this, before starting to offer shares in the capital market,” the 55-year-old former minister stated.

Last year, Singapore sovereign wealth fund GIC agreed to invest $387 million in Trans Retail, CT Corp’s retail arm. Recently, the group announced a strategic partnership with US-based Prudential Financial Inc for its life insurance business, Asuransi Jiwa Mega Indonesia (Mega Jiwa). Prudential Financial bought a 49 per cent stake in the unit for an undisclosed amount, in a deal that industry experts predict to be “the largest deal in the insurance space in a long time”.

Bank Mega is currently the only one of CT Corp’s dozens of units that have been listed on the Jakarta bourse.

The Indonesian Stock Exchange (IDX) – despite being located in Southeast Asia’s largest economy – is currently still relatively small, shallow and less liquid compared to bourses in neighbouring countries.

The IDX has only about 550 listings with a total market capitalization of $480 billion, compared to 755 listings in Singapore with $717 billion, 900 in Kuala Lumpur with $410 billion and 525 in Bangkok with $442 billion, according to data compiled by The Jakarta Post. 

By holding off IPOs, Tanjung appears to be targeting a much larger market capitalization – both for his companies and the market – to maximize his gains. His empire injects $1 billion on average into the country every year through various businesses in financial services, media, lifestyle & entertainment, and natural resources.

The group now manages more than $10 billion in assets and employs over 100,000 people. Its most recognizable brands include Bank Mega, Bank Mega Syariah, Mega Life, Trans TV, Trans 7, Trans Fashion, and Transmart.

In 2017 alone, CT Corp plans to open 30 new Transmart outlets with an investment of Rp 12 trillion ($900 million). The group has also recently entered into several property projects with values ranging from $225 million to $1.5 billion.

Also Read:

Indonesia: Prudential Financial buys 49% in CT Corp’s life insurance business

Singapore’s GIC invests $387m for 17% stake in Indonesia’s Trans Retail, owned by CT Corp

Aviva to sell life insurer Friends Provident International for $443m

Indonesia: CNBC, Trans Media partnership; Government to study Netflix impact

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.