Manila, Philippines – Global consumer finance provider Home Credit has announced that it is selling its Philippine and Indonesian operations, with a valuation of €615m. The transaction is expected to be completed in H2 2023.
The transaction has been reached with a consortium with Mitsubishi UFJ Financial Group (MUFG), led by Thai bank Krungsri Bank, Japanese bank MUFG Bank, Indonesian credit facility Adira Finance, and an undisclosed local Indonesian investor.
Details of the transaction include Krungsri and MUFG Bank purchasing 75% and 25% respectively of Home Credit Philippines for a valuation of €406m; while Krungsri, Adira and a local Indonesian investor will purchase 75%, 10%, and 15%, respectively of Home Credit Indonesia for a valuation of €209m.
Jean-Pascal Duvieusart, CEO of Home Credit Group, said, “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.”
He added, “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.”