Home Credit Philippines acquired by Thailand’s Krungsri, Japan’s MUFG for €406M

Home Credit Philippines announced on Friday that it has been acquired by two companies from Thailand and Japan.

In a statement, Home Credit Philippines said its parent firm, Czech Republic-based PPF Group, sealed a deal with Thailand’s Krungsri or Bank of Ayudhya PCL and Japan’s Mitsubishi UFJ Financial Group (MUFG) for the acquisition of the consumer finance company.

The deal was completed for €406 million, or about P24.4 billion.

Under the deal, Krungsri now holds the majority stake of 75% in Home Credit Philippines, while the remaining 25% of the company is now under MUFG.

"We are pleased to announce the handover of Home Credit Philippines to our new shareholders, Krungsri and MUFG, both market leaders in the financial industry. Together with our new shareholders, we are opening the next chapter for Home Credit Philippines, building on the high performance that we have set over the past nine years. We are optimistic of our future together," said David Minol, Home Credit Philippines CEO.

"The acquisition of Home Credit Philippines 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," added Minol.

Home Credit Philippines said it has a distribution network of more than 15,000 stores nationwide and a customer base of almost 10 million to date after nearly 10 years of operating in the country.

The consumer finance company’s acquisition by Krungsri and MUFG is seen as bolstering the business operations of Home Credit Philippines.

Home Credit Philippines said it is expected to retain its brand and continue its usual operations under the same local leadership team, with guidance from Krungsri.

The company said it aims to further grow its consumer finance portfolio as it synergizes with both banks. —VBL, GMA Integrated News