The transaction has been agreed with a consortium comprising the affiliates of Japan’s Mitsubishi UFJ Financial Group (“MUFG”). The consortium includes MUFG Bank, Krungsri Bank, a leading Thai financial institution, and Adira Finance, an Indonesian consumer finance company. The deals are subject to Krungsri shareholders’ approval as well as customary regulatory approvals.
Krungsri and MUFG Bank are to purchase 75% and 25% respectively of Home Credit Philippines for a valuation of €406 million. In Indonesia, Krungsri, Adira and an Indonesian investor as required by local regulations are to purchase 75%, 10%, and 15%, respectively of Home Credit Indonesia for a valuation of €209 million.
The transactions are expected to close by the second half of 2023. The final consideration is subject to one-to-one adjustment based on the equity book values at the closing of the transactions.
“Home Credit launched around ten years ago in both the Philippines and Indonesia. In that time, they have flourished into market-leading tech-based financial services companies. The success is down to our strong omnichannel network, highly regarded brand, and robust customer base,” said Jean-Pascal Duvieusart, CEO of Home Credit Group.
“It is now the right time for us to pass the baton onto new shareholders who can accelerate growth for these two exciting businesses as they approach this new phase. Both of these markets have played key roles in Home Credit, and we will be watching their future with pride and interest,” added Jean-Pascal Duvieusart.
Mitsubishi UFJ Financial Group, Inc. is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,400 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.
Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand’s six Domestic Systemically Important Banks with 77 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group, Japan’s largest financial group. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 626 domestic branches. The Krungsri Group is the largest card issuer in Thailand with 9.8 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).
PT. Adira Dinamika Multi Finance, Tbk. (Adira Finance) was founded in 1990, initially operated as a car financing company, and later in 1997 expanded to motorcycle financing. In 2004, Adira Finance listed shares on the now Indonesia Stock Exchange and was later acquired by PT Bank Danamon Indonesia. Adira Finance is part of the MUFG Group, as a 92.07% subsidiary of Bank Danamon which is 92.5% held by MUFG.
About Home Credit Philippines/Home Credit Indonesia
Home Credit Philippines has been a leading consumer finance operator in the country for nearly ten years. Since its launch, it has lent to approximately eight million customers nationwide and has approximately nine million registered mobile application users. Launched in 2013, Home Credit Indonesia has lent to approximately five million customers and has approximately eleven million registered mobile application users.
About Home Credit
Founded in 1997, Home Credit is a global consumer finance provider with operations in seven countries of Central and Eastern Europe, and Asia. Coming from the Czech Republic, Home Credit offers services, including credit and ancillary insurance products. It drives and broadens financial inclusion and encourages economic development by supporting domestic consumption. In its 25-year history, the Group has served over 140 million customers and has over 100 million registered app users. PPF Group (91.12%) and Emma Capital investment company (8.88%) are Home Credit Group’s shareholders.
PPF Group operates in 25 countries, investing in multiple sectors, including financial services, telecommunications, media, biotechnology, real estate, and engineering. PPF Group’s reach spans from Europe to North America and across Asia. The Group owns assets to the value of EUR 42.2 billion and employs 78,000 people globally (31 December 2021).