DC Advisory (DC) exclusively advised Korindo Group on the strategic sale of 34.34% of PT Korintiga Hutani by Korindo Group to Oji Paper Co., Ltd (Oji Paper), one of the largest paper manufacturers in the world.
Korindo Group is one of Indonesia’s largest conglomerates and comprises over 30 affiliated companies that are engaged in the natural resources, paper manufacturing, heavy industries, financing, real estate, chemicals, and logistics businesses.
The deal provides Oji Paper with immediate access to valuable resources in Indonesia, which under normal circumstances would take tremendous effort and time to achieve.
By partnering with Korindo Group, Oji Paper mitigated risks associated with operating in Indonesia, an emerging market. The strategic alliance with a local partner enables Oji Paper to tap into Korindo Group’s experience operating in a highly challenging environment, which requires complicated and extensive relationships with local communities.
Oji Paper can also leverage Korindo Group’s expertise in overcoming cultural differences and bureaucratic red tape in Indonesia.
By strengthening their relationship with Korindo Group, Oji Paper could have access to future expansion opportunities.