Seven Group Holdings has confirmed in its recently published annual report the sale of PT Coates Hire Indonesia and PT Coates Services Indonesia by its subsidiary, Coates Australia, to Mitsubishi Corporation.

The AUD64.4 million (USD43.7 million) sale was finalised on 2 April 2024 but was not widely reported on.

Seven Group Holdings says the sale realised a net gain of AUD43.7 million (USD29.6 million) with funds from the 100% divestment of the Indonesian entities to be funnelled into expanding its fleet. 

“Coates continues to grow its hire fleet to meet customer demand through traditional means and programmatic M&A, funded in part by capital redeployment from the sale of Coates Indonesia,” directors say.

“The fleet investment positions Coates to capitalise on the seven-year, AUD1.7 trillion (USD11.5 trillion) infrastructure and construction pipeline, with initiatives under way to increase its market share of this opportunity.”

Coates Indonesia’s website confirms the sale to Mitsubishi, with Kawan Lama Group as a minority shareholder.

Mitsubishi Corporation, headquartered in Tokyo, is a global integrated business enterprise that develops and operates businesses together with its global network of around 1,800 group companies.

MC has eight business groups that operate across virtually every industry: environmental energy, materials solutions, mineral resources, urban development & infrastructure, mobility, food, ‘smart-life creation’ and power solutions.