HC Consumer Finance Phils. Inc., operator of the brand Home Credit with its parent firm PPF Group based in the Czech Republic, has sealed the deal to sell the company to Krungsri or Bank of Ayudhya PCL—the fifth-largest financial group in Thailand and to Mitsubishi UFJ Financial Group (MUFG)—a global financial leader from Japan.
Krungsri will hold the majority stake in Home Credit at 75 percent, and MUFG the remaining 25 percent.
The deal was consummated with a base value of €406 million, or about P24.4 billion. The final consideration is subject to one-to-one adjustment based on the equity book value at closing of the transaction.
“We are pleased to announce the handover of Home Credit Phils. to our new shareholders Krungsri and MUFG—both market leaders in the financial industry,” Home Credit Phils. CEO David Minol said. “Together with our new shareholders, we are opening the next chapter for [the firm, building on its] high performance that we have set over the past nine years. We are optimistic [about] our future together.”
Minol added that the acquisition of Home Credit Phils. is a testament to the strong business it has established in the country, and “the growth opportunity that Krungsri and MUFG have seen for the company to further expand and maintain its dominance in the local consumer finance market.”
“I want to put on record: Our congratulations to our colleagues at Home Credit Phils. for an incredible job well done,” Home Credit group CEO Radek Pluhar stated. “Together, we have empowered nearly 10 million Filipinos to access the formal economy via our innovative products and services. We are proud of these achievements, and will be watching the company’s future growth with interest.”
Home Credit Phils. has grown to become a market leader with the widest distribution network of more than 15,000 stores nationwide. This allowed the company to acquire a growing customer base of almost 10 million as of late in its nearly 10 years of local operations.
“With the acquisition of Home Credit in the Philippines, we have achieved another significant milestone in our [regional] expansion strategy through the successful execution of our medium-term business plan,” Krungsri president and CEO Kenichi Yamato said. “By incorporating Home Credit in the Philippines into its portfolio, the bank aims to cater to the evolving financial needs of consumers with a full range of innovative consumer finance products and services. Building upon its strong presence in the high-potential country, this acquisition further solidifies Krungsri’s position as a leading financial institution in Asean.”
Yamato furthered: “With the expertise and extensive experience, Krungsri, together with Home Credit, is well-positioned to capitalize on the growing demand for consumer-finance solutions, and reaffirms its commitment to providing suitable products and services that empower individuals and drive sustainable growth in the market.”
The transaction is set to bolster Home Credit Phils.’ business operations, as it continues to provide more Filipinos access to credit, while building on Krungsri’s expertise as one of Thailand’s finance leaders.
Home Credit Phils. is expected to retain its brand while continuing its usual operations under the same local leadership team, with guidance from Krungsri. The company aims to further grow its consumer finance portfolio as it synergizes with both banks.