ITOCHU : Announces Capital Alliance between Benefit One Indonesia and MidPlaza Holdings
October 22, 2014 at 08:54 pm EDT
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October 22, 2014
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter "ITOCHU") announced today that PT. BENEFIT ONE INDONESIA (headquartered in Jakarta, Indonesia; Norio Shiraishi, President & Director; hereinafter, "Benefit One Indonesia"), which mainly operates a points-based incentive program in Indonesia, has reached an agreement to form a capital alliance with PT. Karang Mas Investama, an Indonesian-based investment company which forms part of Midplaza Holdings (hereinafter, "KMI"), to boost sales activities and service development in Indonesia.
Benefit One Inc. and ITOCHU Corporation established Benefit One Asia Pte. Ltd. (60% owned by Benefit One and 40% owned by ITOCHU; hereinafter "Benefit One Asia") in Singapore of October 2013, to provide fringe benefit services for companies in Asia.
In May 2014, Benefit One Asia established Benefit One Indonesia in Indonesia, a region which is experiencing continuing economic growth. Benefit One Indonesia began providing the Incentive Point program in August. The Incentive Point program allows employers to award points to employees as incentives for positive performance or behaviors such as efforts to improve themselves or good attendance records. The employees can then exchange the points with products provided by Benefit One's platform.
Benefit One Indonesia's alliance with PT. Karang Mas Investama will further accelerate its growth in Indonesia by boosting sales activities to acquire new customers utilizing KMI's network, strengthen service development, and draw on KMI's management expertise to strengthen personnel, legal and technology related matters of Benefit One Indonesia. PT. Karang Mas Investama is an investment company affiliated with Midplaza Holdings, a holding company engaged in a range of businesses spanning from property, information technology, and hospitalities, among others.
Outline of capital alliance
Date of conclusion of contract
By the end of October (tentative)
Transfer of 10% stake in Benefit One Indonesia to PT. Karang Mas Investama
(10% stake includes 9% stake of Benefit One Asia and 1% stake of Benefit One)
Shareholder structure after the transfer of shares:
Benefit one Asia (90%), PT. Karang Mas Investama (10%)
Purpose
To enhance the Incentive Point business in Indonesia
(i)Boost sales capability
(ii)Strengthen service development of Incentive Point program
(iii)Increase management expertise concerning personnel, legal and IT systems in Indonesia
Itochu Corporation is a diversified group organized around 8 areas of activity:
- distribution of food products (34.9% of net sales): frozen food, vegetable oil, sweeteners, sugars, etc.;
- distribution of hydrocarbons (23.3%): hydrocarbons (natural gas, oil products, bioethanol, etc.). The group also develops manufacturing of chemical products activity;
- manufacturing and sale of industrial and construction machines, vehicles and ships (9.7%);
- production of metals and coal (8.5%);
- sale of consumer products (8.4%). The group also develops forest products sale and real estate development activities;
- distribution of computing and telecommunication equipments (7%): data transmission, Internet access, media content broadcasting and mobile telephony equipments. The group also offers financial services;
- sale of textile products (3.6%);
- other (4.6%).
Net sales are distributed geographically as follows: Japan (79.5%), Singapore (5.4%), the United States (4.5%), Australia (3.1%), China (2.8%) and other (4.7%).
ITOCHU CORPORATION 
