Michelin Takes Over Barito Group's Rubber Company

Summary

The Barito Group, a business conglomerate owned by Pajogo Pangestu, sold its stake in rubber producer PT Royal Lestari Utama (RLU) to the French tire manufacturer Michelin Group. Royal Lestari Utama (RLU) management, in an announcement in Bisnis Indonesia newspaper, said the company would issue new shares, which Michelin will take over. "For the share purchase, Compagnie Financiere Michelin SAS becomes the majority owner of the shares issued by RLU," RLU management said on Wednesday, June 22.

RLU is an integrated natural rubber company established in 2015 through a joint venture between Barito Pacific Group (Indonesia) and Michelin Group (France), one of the world's largest tire manufacturers. Through its subsidiaries, RLU develops and manages more than 88,000 hectares of natural rubber areas in Jambi and East Kalimantan.

In 2018, RLU received Asia's first corporate sustainability bond amounting to US$95 million from the Tropical Landscapes Finance Facility (TLFF). RLU is separate from the Barito Group entity listed on the Indonesia Stock Exchange (IDX), PT Barito Pacific Tbk (BRPT). RLU's performance is also not consolidated in the BRPT's financial statements.

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