KUALA LUMPUR: Pecca Group Bhd has completed the acquisition of an 80 per cent stake in PT Gemilang Maju Kencana (GMK), which supplies upholstery leather wrapping and seat covers to the Indonesian automotive industry.
On March 10, 2023 Pecca announced that its wholly-owned Pecca Leather Sdn Bhd had signed shares transfer agreements with PT Multi Berjaya Asindo, CSC Automotive Sdn Bhd and Tan Kim Cheang, for the acquisition.
Pecca today said the acquisition was now deemed complete following approval from the Minister of Law and Human Rights of Indonesia on the transfer of rights of the shares to Pecca Leather.
GMK is associated with Indonesia's PT Multi Pratama Interbuana Group (MPI).
Established in 1998, MPI is an industrial manufacturing group based in West Java.
MPI provides industrial automation services to automotive and electronics companies.
It also produces plastic injection molds used in the automotive and electronics supply chain.
Pecca chief executive officer Foo Ken Nee said completing the acquisition unlocked the next chapter of the company's international expansion plan.
He said Indonesia, with its massive automotive market and growing economy, promised to be a key driver of Pecca's growth.
Foo noted that Indonesia has a population of 281 million people, along with the highest vehicle sales figures of any Southeast Asian market.
"Our stake in GMK will accelerate the process of establishing our presence in this very exciting market," he said in a statement today.
Pecca Group styles, manufactures, distributes and installs upholstery for car seat covers and interior products for a diverse range of automotive manufacturers.
They include Perodua, Proton, Nissan, Subaru, Ford, Mitsubishi Motors, Toyota, Hyundai, Peugeot, Volkswagen, Suzuki and Isuzu.