July 10,2017 Purchase of Group Lease PCL Shares by J Trust Subsidiary

July 10, 2017

Representative: Nobuyoshi Fujisawa, Managing Director,CEO
Contact: Shigeyoshi Asano, Director
Telephone: +65-6225-6938

Purchase of Group Lease PCL Shares by J Trust Subsidiary

J Trust Co., Ltd., the parent of JTRUST ASIA PTE. LTD., published a press release “Purchase of Group Lease PCL Shares by J Trust Subsidiary”. Please refer to the attachment.

July 10, 2017

Company Name: J Trust Co., Ltd.
(Listed on Second Section of the Tokyo Stock Exchange, code 8508)
Representative: Nobuyoshi Fujisawa, President & CEO
Contact: Taiji Hitachi, Director and Executive Officer
Telephone: +81(3) 4330-9100

Purchase of Group Lease PCL Shares by J Trust Subsidiary

JTRUST ASIA PTE. LTD. (hereinafter, “JTA”), a subsidiary of J Trust Co., Ltd. (hereinafter, “the Company”) has purchased shares of Group Lease PCL (the Kingdom of Thailand; listed on the Stock Exchange of Thailand; ticker code: GL; hereinafter “GL”) through the Stock Exchange of Thailand.
The Company hereby announces the status of the purchase as described below.

  1. Purpose of share purchase

    GL has been successfully expanding business with running Digital Finance business in seven countries mainly in the ASEAN region, including Thailand, Cambodia and Laos. The fact that, in fiscal 2016, GL’s full-year profit reached a record high of THB 1,060 million attests the solid growth of the company. Meanwhile, GL has recently entered a new exclusive agreement with Honda NCX, the exclusive agency for handling Honda motorcycles in Myanmar and has renewed another exclusive agreement with Honda NCX in Cambodia. Those new exclusive agreements will consolidate GL’s sales bases and lead to further boosts of the sales.

    GL established a multi-finance company PT Group Lease Finance Indonesia (hereinafter “GLFI”) in Indonesia to accelerate leasing and consumer financing businesses using Digital Finance Platform and, with GL being a strategic partner in ASEAN markets, J Trust Group (hereinafter, “JTG”) also invests in it. GLFI started operation in July 2016. The business there is structured on the scheme of GLFI engaged in marketing, credit screening and collecting the loan claims targeting at agriculture-related equipment and motorcycle purchasers and those in need of microfinance, and PT Bank JTrust Indonesia Tbk., a subsidiary of the Company engaged in providing the financing to them. The loan balance successfully reached IDR 127.3 billion as of the end of June 2017. Since GLFI is accounted for by using the equity-method, the Company expects profit proportional to its ownership interest.

    Capitalizing on the growth opportunities in emerging economies in Southeast Asia, JTG aims to expand business along with GL, its strategic partner. JTG subscribed for GL’s convertible bonds to backstop GL’s business proactively. Meanwhile, we have anew acquired GL’s shares in the market based on a consideration that the shares remain undervalued after their plunge on March 8, 2017.

  2. Status of investment in GL shares (April 28, 2017- July 6, 2017)
    (ⅰ)Number of shares purchased21,496,500 shares
    (ⅱ)Number of shares currently owned98,100,000 shares(Ownership ratio: 6.43%)
    Total number of shares owned: (ⅰ) + (ⅱ)119,596,500 shares(Ownership ratio: 7.84%)
    (Residual securities)
    (ⅲ)Convertible bonds139,803,428 shares
    (ⅳ)Subscription rights to shares (warrant)19,016,900 shares
  3. Outlook

    JTG continues to align with GL strategically to focus on retail finance in Indonesia and other ASEAN markets, and to seek further business growth.
    Going forward, we will make an investment decision in a timely manner when GL’s share price is deemed undervalued.




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