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13 December 2016 : The Summary of extraordinary general meeting of shareholders No. 2/2016

The Summary of extraordinary general meeting of shareholders No. 2/2016

13 Dec 2016

The Summary of extraordinary general meeting of shareholders No. 2/2016 for Group Lease Public Company Limited Held on 6th December 2016 In the room Magic 2, 2nd floor At Miracle Grand Convention Hotel.

Please refer to the following URL for video on that day.

Page No. of presentation file which Mr.Mituji Konoshita is presenting is stated left bottom side of VDO.

 

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07 December 2016 : GL’s Key Regional Investment Plans Get Shareholders’ Green Light

GL's Key Regional Investment Plans Get Shareholders' Green Light

07 Dec 2016

Chairman of the Board of Directors and Chief Executive Officer of GL, revealed the shareholders’ resolution, at the company’s extraordinary general meeting No. 2/2016 on December 6, 2016, to approve the proposed moves to expand the company’s presence in the digital finance markets in the Asean and Asian regions, which will be the new engine of growth for the company.

The acquisition will be made through Group Lease Holdings PTE. Ltd (GLH), a subsidiary registered on the Singapore Exchange (SGX), buying 22.27% shares in Commercial Credit and Finance PLC (CCF) from Creation Investments Sri Lanka LLC (Creation SL). CCF is a leading finance firm listed on Sri Lanka’s stock market with about one million customers and that will help GL to widen its geographical scope of operations beyond Asean to cover Sri Lanka, a growing South Asian market.

The 22.27% share acquisition will be part of the plan to hold a total of 29.99% shares in CCF, he said, adding that GLH has purchased the difference of 7.72% from two shareholders, i.e. BG Investments (PVT) Ltd. and Mr. Stephen L Lafrance Jr. The purchases, which were not connected transactions, did not require shareholder approval.

The combined value of the investments in CCF will reach THB 2.514 billion (about LKR 10.58835 billion). The CFF investments will improve GL’s performance beginning Q4 of 2016, as about USD 7 million (or about THB 244.6 million) will be posted as a profit sharing from CCF, whose profit for this year is estimated to be around US$22 million and around US$30 million for 2017.

The deal will also enable GL to have access to microfinance know-hows, which can be used to apply for credit expansions in Cambodia, Laos, Indonesia and Thailand.

Mr. Mitsuji added that GL’s shareholders also resolved to approve a proposed THB 277.24 million acquisition, to be executed by GL and/or through GLH, of all 1,387,680 issued and paid-up ordinary shares in BG Microfinance Myanmar Co., Ltd. (BGMM), a microfinance firm in Myanmar, at about US$5.77 (about THB 199.79) per share.

The BGMM acquisition will allow GL to immediately expand microfinance business in Myanmar, a country with a population of more than 50 million and huge loan demand. The deal means there is no need for GL to go through the difficult process of applying for a new microcredit business license from the Central Bank of Myanmar. Having been in operation for more than two years, BGMM has nearly 10,000 customers and a loan portfolio worth more than US$1.2 million (about THB 41.9 million).

GL’s shareholders, at an extraordinary general meeting, also approved proposed issuance of convertible debentures valued up to US$70 million to international investors on a private placement basis. Up to US$50 million convertible debentures will be allotted to JTrust Asia (JTA), a strategic partner in Indonesia, to finance expansions and secure working capital for GL’s digital finance business, and US$20 million convertible debentures to Creation SL, a partner in Sri Lanka, to raise funds for continued expansion. The debentures will have a three-year maturity period and a conversion price of THB 70 per share.

“The shareholders’ approvals will enable GL to increase its presence across the Asean and Asian regions at rapid rate and reach its performance goals and become a world-class digital finance firm,” said the CEO.

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28 November 2016 : GL’s Great Leap Forward

GL's Great Leap Forward

28 Nov 2016

After mounting an aggressive series of mergers and acquisitions over the last several months, SET-listed digital finance firm Group Lease Public Company Limited (GL) is now poised for what its senior management described as “The Great Leap Forward”.

Backed by solid existing operations in Thailand, Cambodia and Laos, the “Great Leap” will be propelled by GL’s most recent acquisitions in Sri Lanka and Myanmar plus new operations in the largest ASEAN market of Indonesia.

According to the chairman of GL’s executive committee Tatsuya Konoshita, this new phase of major expansion will transform GL from a simple motorcycles leasing firm based in Thailand into a “global” Digital Finance company with the ambitious mission of ultimately extending financial services to 2.5 billion people at the grassroots levels in Asia and beyond.

One key objective under this aggressive expansion plan is to raise GL’s market capitalization, which currently stands at about US$2 billion to US$10 billion over the next three years.

“Unlike other financial institutions which are mostly after customers in big cities or other urban areas, our targets are the majority of the rural people who do not have any access to the banking system or the formal money markets. We provide our services to them so they can grow their businesses or improve their quality of life,” Mr. Konoshita said.

The major push forward in terms of business expansion will be made possible by vast clusters of agents/dealers spread out across the region. These include an extensive new network of about 22,000 grocery shops in Myanmar, another 22,000 selling agents in Sri Lanka, some 5,000 True Money dealers and about 1,000 of GL’s original agents in Cambodia – plus some 600 GL Points of Sales (PoS) in Thailand, and 300 each in Laos and Indonesia.

“The key strategy behind our business expansion is through dealers. They are our direct contacts with the customers. With the Digital Finance platform that we provide them, GL could expand the network far faster than others,” Mr. Konoshita noted.

From about 1,000 agents/dealers at the end of last year, GL’s region-wide network of dealers has now jumped to more than 50,000. Even more impressive is the potential to jump-start and expand the number of clients by 100 folds, from about 200,000 at the end of 2015 to about 20 million at present, Mr. Konoshita stated.

“We are the one and only Digital Finance company which means we can expand at high speed like an IT company while at the same time also earning high profits as a financial institution,” Mr. Konoshita noted.

The “Great Leap” over the next three years will follow what has already been a phenomenal growth in the recent past. This has been reflected in GL’s outstanding financial performance to date, placing the company among the top performers in the Thai stock market’s finance sector.

GL’s Q3 profits of 260.41 million baht marked the eighth consecutive quarter of new record-high profits and raised total nine-month profits this year to 738 million baht. Senior executives, who had projected at the start of the year that last year’s profits of about 600 million baht would double to about 1 billion baht this year, are now confident that the target would be achieved.

On top of the company’s own organic growth, GL’s profits in Q4 will be boosted by the recent series of acquisitions since it will start consolidating its share of profits from a 29.99% stake it acquired in Commercial Credit & Finance Plc (CCF), a highly profitable finance company listed on the Colombo stock exchange.

Supported by continuous solid growth from its existing operations plus contributions from the recent acquisitions, senior GL executives are now projecting that profits next year will further double from this year’s expected 1 billion baht to at least 2 billion baht.

According to Mr. Konoshita, one substantial new source of revenue in 2017 will be its share of profits from the 29.99% stake GL holds in CCF. The Sri Lankan company is projecting to raise its estimated profits from US$22 million this year to US$30 million next year, which means GL will be able to consolidate roughly one third of that.

Recent expansion into Myanmar is also expected to start making meaningful contributions to overall profitability next year. In this booming market, GL has recently acquired full ownership of BGMM, a Myanmar microfinance firm. It has also entered into strategic partnership with leading Myanmar businessman Aung Moe Kyaw and other local partners (AMK consortium) to expand the scope of all other financial services aside from micro financing.

Aung Moe Kyaw is the owner of Century Finance, a finance company licensed by the Myanmar central bank, and chairman of Myanmar Distillery, the country’s leading liquor and beverages company. Mr. Konoshita noted that the partnership with the AMK consortium is particularly important because its nationwide distribution network of about 22,000 grocery shops can potentially become GL’s clients while also acting as GL’s dealers to canvass for other clients in all parts of the country.

Meanwhile, GL Finance Indonesia (GLFI) which formally started operations on July 25 has already turned a small profit in Q3. “This is highly remarkable because normally it would take years for new finance companies to turn profitable,” Mr. Konoshita said. Because of the enormous size of the Indonesian markets — more than 250 million population – profits from Indonesia are expected to be more than Thailand and Cambodia combined by 2018.

The short break-even period in the Indonesian operations was possible thanks to the highly efficient Digital Finance platform developed by GL itself which features a speedy process covering all aspects of the financial services it renders – from loan application/approval to installment payment and remittances by clients.

Of the 260.41 million baht Q3 profits, Thailand and Cambodia accounted for 100 million baht and 130 million baht respectively while another 15 million baht each was contributed by Thai subsidiary Thanabun and GL Laos.

Mr. Konoshita noted that the Thailand operations will continue to grow, albeit at a slower pace compared to the much faster growth in all overseas operations. As such, Thailand’s share to the group’s total profits will decline from about 40% this year to only 20% next year and drop even further thereafter.

In order to raise more funds to finance the new phase of major expansion, GL’s Board of Directors recently decided to issue new convertible debentures (CDs) totaling US$70 million in private placement (PP) – comprising of US$50 million to be subscribed by its strategic partner in Indonesia, JTrust Asia (JTA,) and another US$20 million for an affiliate in Sri Lanka, Creation Investments Sri Lanka (Creation SL).

Carrying three-year maturity, the conversion price for these CDs is set at 70 baht per share. These new CDs are in addition to the most recent batch of US$130 million worth of CDs that were also subscribed by JTA and carried the conversion price of 40 baht per share.

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14 November 2016 : GL Shows New Record-High Q3 Profits, Expects Even Stronger Growth in Q4

GL Shows New Record-High Q3 Profits, Expects Even Stronger Growth in Q4

14 Nov 2016

Thanks to continuous expansion of its growing regional businesses, SET-listed digital finance firm Group Lease Public Company Limited (GL) has reported a new record-high net profit of 260.41 million baht for the third quarter ending September, which represents a whopping 73.29% increase from the same period last year.

This marks the eight consecutive new quarterly record-high profits for GL, which prides itself as the first Thailand-based financial services company that has developed a highly efficient digital finance platform now being used to support its business expansion into Thailand’s neighboring countries of CLMV plus Indonesia and Sri Lanka.

GL Chairman and Chief Executive Mitsuji Konoshita noted that the Q3 profits would have been considerably higher at nearly 300 million baht if it had not been for one-time fees impact from several acquisitions.

He added that these acquisitions – particularly the 29.99% stake GL acquired in Commercial Credit & Finance Plc (CCF), a leading and highly profitable finance firm listed on the Colombo Stock Exchange – will help raise GL’s profits to substantially higher levels beginning in Q4.

CCF has projected to make a full-year profit of US$24 million this year and GL will start booking its share of the profits in Q4 from its 29.99% stake.

The chairman of GL’s executive board Tatsuya Konoshita explained further that the Q3 profits were also dragged by about 40 million baht of interest expenses for a new batch of US$130 million convertible debentures (CDs) that were issued for subscription by GL’s strategic partner in Indonesia, J Trust Asia (JTA).

He said the results have shown improvement in all fronts, with the Cambodian operations continuing to be the star performer while the relatively new operations in Indonesia have, surprisingly, turned positive in this quarter.

A rough breakdown of the Q3 profits shows the Cambodian operations (which combine the regular leasing of motorcycles and agricultural machineries plus loans to SME businesses) contributing the largest portion of about 130 million baht, followed by Thailand operations (about 100 million baht), plus another 15 million baht each from the Thai subsidiary Thanabun and GL Laos.

On top of acquiring the 29.99% stake in the listed Sri Lankan finance firm CCF, GL is also mounting a full-scale expansion into Myanmar by taking over a micro-finance firm and partnering with local business tycoon U Aung Moe Kyaw, owner of Century Finance and the country’s leading liquor group Myanmar Distillery, to expand into a broad range of other financial services.

Raising more funds to support the company’s aggressive regional expansion, it recently decided to issue additional CDs totaling US$70 million in private placement (PP) – comprising of US$50 million to be subscribed by its strategic partner JTA and another US$20 million for an affiliate in Sri Lanka, Creation Investments Sri Lanka (Creation SL). Carrying three-year maturity, the conversion price for these CDs is set at 70 baht per share.

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13 October 2016 : GL Partnering U Aung Moe Kyaw (AMK) Owner of Century Finance & Group Chairman of Myanmar Distillery Company Limited in Major Myanmar Expansion

GL Partnering U Aung Moe Kyaw (AMK) Owner of Century Finance & Group Chairman of Myanmar Distillery Company Limited in Major Myanmar Expansion

13 Oct 2016

SET-listed digital finance firm Group Lease Public Company Limited (GL) is taking another important strategic move by partnering with U Aung Moe Kyaw (AMK) and other investors (AMK Consortium) to launch a major expansion of financial services in Myanmar.

Under the new partnership, GL will set up a joint venture company with the AMK Consortium. . This joint venture will support Century Finance Company Limited, a Myanmar finance company owned by AMK, to provide a broad range of financial services to the booming Myanmar markets, especially for people in the rural countryside.

GL, through its holding company in Singapore GL Holdings (GLH) will hold 57% in the new JV company while AMK and Consortium will take up the other 43%. The new company is expected to be established by the end of this year or in early 2017.

“We are very pleased to enter into this collaboration with U Aung Moe Kyaw and his partners,” GL Chairman & Chief Executive Officer Mr. Mitsuji Konoshita stated at an MOU Signing Ceremony with U Aung Moe Kyaw in Bangkok on October 13. “This is a win-win partnership because our expertise and efficiency in digital finance will combine and complement with U Aung Moe Kyaw’s extensive network throughout Myanmar,” he added.

According to GL’s official filing with the SET on October 13, AMK Consortium is currently controlling approximately 65% in the whisky distribution and managing more than 22,000 grocery shops in Myanmar, including 1,400 wholesale shops some of which are already operating pawnshop businesses. This distribution network is the biggest in Myanmar in terms of number of outlets, which will perfectly match with GL’s digital finance platform.

Mr. Konoshita noted that as GL has already proven in Cambodia with True Money, GL’s digital finance business model is the only model that can utilize 100% benefits from AMK Consortium’s extensive agents network.

Therefore, the business model in Myanmar will be a mixture of the “Channeling Services” model in Indonesia where GL partners with Bank JT and the “Agent” model in Cambodia with True Money. “These business models are quite new, unique and innovative. Combining them together, we shall be able to effectively provide a wide range of financial services for the benefits of the Myanmar people, especially those in the rural grassroots areas,” Mr. Konoshita stated.

Century Finance, one of Myanmar’s 15 non-bank finance companies licensed by the Myanmar central bank, currently provides car leasing services.

With GL’s expertise and support, Its range of financial services will now broaden to cover the leasing of motorcycles, agricultural machinery and solar panels and other consumer finance credit under “channeling services” managed and provided by the new joint venture company.

GL’s latest partnership with the AMK Consortium comes after its recent take-over of BG Myanmar Microfinance (BGMM). The new joint venture company, therefore, completes the full range of financial services and products that will be offered to the Myanmar markets – from small microfinance loans through BGMM to big-ticket items like rice-harvesting machines through Century Finance.

The full-scale expansion into Myanmar comes in the face of a booming local economy following the lifting of US economic sanctions after extensive local political reforms. For GL, the latest partnership with AMK Consortium has also come following its successful expansion from its home base in Thailand into neighboring Cambodia, Laos, Indonesia and Sri Lanka.

The successful expansion has resulted in steadily increasing revenue and profitability. For instance, its Q2 net profits of 255.85 million baht nearly doubled from the same period last year and represented the seventh consecutive quarter of new record highs. Company executives have expressed confidence that profits will continue to scale new heights in the medium and longer-term future.

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13 October 2016 : We express our deepest condolences over the demise of King Bhumibol Adulyadej of Kingdom of Thailand

We express our deepest condolences over the demise of King Bhumibol Adulyadej of Kingdom of Thailand

13 Oct 2016

Mr. Mitsuji Konoshita, Chairman & CEO delivers statements over the demise of HM King Bhumibol Adulyadej of Kingdom of Thailand.

It is with deepest sorrow to learn from the Royal Household Bureau that HM King Bhumibol Adulyadej has passed away peacefully on 13th Oct 2016. Throughout his 70-year reign, King Bhumibol Adulyadej was the greatest King who was well-loved by the people of Thailand and appreciated all around the world. His accomplishments are so huge that the people of Thailand are filled with immeasurable sorrow. We are grateful to His Majesty to provide to our group the opportunity to be established and prosper in His Kingdom for more than 19 years.

We wish to pay gratitude to His Majesty’s greatness by continuing the development of our businesses in the Kingdom of Thailand and also wish to express our heartfelt condolences on the passing of His Majesty.

Mitsuji Konoshita
Chairman & CEO
And Management & staff
Group Lease Public Company Limited

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03 October 2016 : GL Takes 29.99% in Leading Sri Lanka Finance Firm, Expects to Book US$7M Profits Annually

GL Takes 29.99% in Leading Sri Lanka Finance Firm, Expects to Book US$7M Profits Annually

03 Oct 2016

After a spate of aggressive expansion in ASEAN, SET-listed digital finance company Group Lease Public Company Limited (GL) is now extending its business footprint to outside the region by acquiring a substantial stake in a leading Sri Lankan finance institution registered by the Sri Lanka Central Bank which is highly profitable and listed on the Colombo stock exchange.

According to GL Chairman and CEO Mitsuji Konoshita, GL’s latest decision to buy 29.99% of Commercial Credit & Finance Plc (CCF) will further enhance the strategic partnership between the two groups. “We will combine GL’s efficient digital finance platform with CCF’s successful microfinance model to grow our businesses in all markets where we are and will be present. This acquisition will bring estimated consolidated profits of about US$ 7 million annually starting immediately in Q4 this year,” Mr. Konoshita said.

Mr. Konoshita also noted that GL, through its subsidiary in Singapore GL Holdings (GLH), will potentially have the rights to acquire the remaining 70% in CCF should the CCF shareholders decide to sell in the future under a special clause on the first rights of refusal stipulated in the shareholders agreement.

The acquisition valued at US$ 70 million marks GL’s first major expansion outside of the ASEAN region. From its home base in Thailand, GL has expanded successfully into Cambodia, Laos Indonesia and, more recently, Myanmar.

In the same exercise as the CCF acquisition, GLH is also acquiring full ownership of CCF’s microfinance subsidiary in Myanmar – BG Microfinance Myanmar Co Ltd (BGMM). GLH in early September bought 71.9% shares in BGMM and is now buying up the remaining 28.1% from CCF to gain complete control.

At a shares sale/purchase agreement signing ceremony in Bangkok to effect both transactions on October 3, the GL Chairman Mr. Konoshita said the CCF acquisition in particular will have a significant impact on the group’s profitability right away since earnings from CCF will be consolidated into GL’s accounts starting in the current Q4.

CCF has an assets size of about US$ 500 million compared to GL’s roughly US$ 450 million although the latter’s market capitalization is substantially larger than that of CCF owing to the solid strength and popularity of the Thai stock market compared to the less developed Sri Lanka stock exchange. CCF has projected a net profit of US$ 22 million this year.

Mr. Konoshita noted that GL will have some representation on the CCF Board but will allow the current management a free hand in continuing to run the company because the management is very effective. “This is a mature company with perfect management. We may support by introducing supplementary businesses such as e-payment, e-commerce or insurance,” he said.

The shares sale/purchase agreement signed on October 3 takes immediate effect conditional on the approval of the relevant authorities in both countries, endorsement by the Extraordinary Shareholders Meeting (EGM) and also the Independent Financial Advisors (IFA) report.

Mr. Konoshita stated that the GL-CCF relationship is a win-win strategic partnership giving synergies to both sides. “Our digital finance platform can nicely enhance their expertise and knowhow in microfinance; while their need to access to capital can easily be met by our capability to raise funds internationally,” he added.

Mr. Konoshita stressed that the new partnership with CCF will produce highly positive impact on GL’s revenue and earnings in the future because the “group finance” model which has been successfully developed in the microfinance heartlands of Sri Lanka and Bangladesh will help to vastly increase GL’s traditional markets of consumer finance and hire-purchase in the region and elsewhere.

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27 September 2016 : New business in Cambodia ~partnership with True Money

New business in Cambodia ~partnership with True Money

27 Sep 2016

 

 

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07 September 2016 : GL Expanding into Microfinance Market in Myanmar

GL Expanding into Microfinance Market in Myanmar

07 Sep 2016

In a strategic move that will have significant impact on its future profitability, SET-listed digital finance firm Group Lease Public Company Limited (GL) is expanding into the huge and potentially lucrative Microfinance market in Myanmar by partnering with a leading Sri Lankan financial group, the Commercial Credit & Finance Plc.

GL Chairman and Chief Executive Officer Mitsuji Konoshita announced at a press conference in Bangkok on September 7 that GL Holdings (GLH, GL’s holding company based in Singapore) is taking over 71.9% of BG Microfinance Myanmar Co., Ltd., a subsidiary of the Sri Lankan financial group that has been operating a successful Microfinance business in Myanmar over the past two years.

The takeover is pending due diligence of the Myanmar firm which is due to be completed shortly and profits from the Myanmar operations are expected to be consolidated into GL’s books starting from the fourth quarter this year, Mr. Mitsuji said.

GLH in effect will buy the majority stake in the Myanmar firm from B.G. International Private Ltd., a private holding company also based in Sri Lanka owned by Mr. Roshan S. Egodage that is affiliated with Commercial Credit. The remaining 28.1% in the Myanmar firm will be retained by Commercial Credit, of which Mr. Egodage serves as Chief Executive Officer.

“We are very pleased to enter into this collaboration with Commercial Credit, a publicly listed company on the Sri Lanka stock market which is one of the country’s most successful and respected finance companies,” Mr. Mitsuji stated at a ceremony in which he and Mr. Egodage signed a Memorandum of Understanding (MoU) on the transaction.

A market leader with about one million Microfinance customers, Commercial Credit has won numerous awards including Best Microfinance Company and Best Brand 2015 Awards in Sri Lanka. It is projecting a US$22 million net profit this year.

Myanmar represents the fifth country in GL’s regional footprint. From a simple motorcycle leasing company based in Thailand, the company has developed into a cost-effective and efficient digital finance firm and successfully expanded into the neighboring countries of Cambodia, Laos plus Indonesia.

GL recently announced a record-high Q2 net profit of 255.85 million baht, raising total first-half profit to 478 million baht. Senior executives have expressed confidence that a previously announced target to double last year’s roughly 500 million baht net profit to one billion baht this year now appears increasingly realistic.

The latest takeover in Myanmar is seen as a boon for GL especially in the medium and longer term future. At the moment, BG Microfinance Myanmar is small with a total portfolio valued at about US$1,5 million in ‘group loans’ (five borrowers per group each borrowing US$200 to purchase used motorcycles or other personal belongings). It has a total of 9,800 customers. Although small, the operations are considered quite profitable, churning out about US$20,000 profit per month.

In an official filing with the SET, GL stated that the Myanmar firm “is providing micro loans to women considered as the focal point of the family unit, and by group of five members each collectively responsible for the others. Loan maturity is fixed at 50 weeks and repayment collection is made on a weekly basis”.

Mr. Mitsuji noted that the portfolio size could have easily been increased substantially but that was not possible because of strict restrictions by the Sri Lankan authorities on capital outflows.

Now that it is in GL’s hands, BG Microfinance Myanmar will grow by leaps and bounds. With US$6.8 million new cash injection – and employing the efficient system developed by Commercial Credit — the Myanmar firm will expand from its existing three branches (two in Yangon and one in Bago, northeast of Yangon) to new branches in 12 more districts in various parts of the country.

Mr. Mitsuji reckons the portfolio size will dramatically increase to US$30-40 million next year when monthly profit is expected to shoot up tenfold to about US$200,000, made possible by effective high interest rates.

In the bigger picture, Mr. Mitsuji noted that GL’s successful “Digital Finance” business model will contribute to BG Microfinance Myanmar’s rapid expansion while the new Sri Lankan partner’s efficient “Group Finance” model will now be introduced and implemented in all other countries where GL operates, especially in Indonesia which offers enormous growth potentials.

“Our partnership with Commercial Credit will deliver perfect synergies that will help sustain rapid business expand in the region and beyond,” Mr. Mitsuji stated.

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07 September 2016 : MOU Signing Ceremony & Press Conference / Group Lease PCL / 7,September 2016

MOU Signing Ceremony & Press Conference / Group Lease PCL / 7,September 2016

07 Sep 2016