Leading consumer finance company Home Credit Philippines (“HC Consumer Finance Philippines, Inc.”) announced the completion of its acquisition by Krungsri (“Bank of Ayudhya PCL”), the fifth largest financial group in Thailand, and Mitsubishi UFJ Financial Group (“MUFG”), a global financial leader from Japan.
In a statement, Friday, June 2, HC said the deal was completed with a base value of EUR 406 million, P24.4 billion. The final consideration is subject to one-to-one adjustment based on the equity book value at closing of the transaction.
PPF Group the parent company of Home Credit Philippines based in Czech Republic sealed an agreement with MUFG and Krungsri to acquire Home Credit Philippines. Krungsri holds the majority stake of 75 percent and MUFG the remaining 25 percent.
“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,” shared 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,” Minol added.
“I want to put on record, our congratulations to our colleagues at Home Credit Philippines for an incredible job well done,” said Home Credit Group CEO, Radek Pluhar. “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.”
The company has grown to become a market leader having the widest distribution network of more than 15,000 stores nationwide. This allowed Home Credit Philippines to acquire a growing customer base of almost 10 million as of date in its nearly 10 years of operations in the country.
Krungsri President and Chief Executive Officer Kenichi Yamato said, “With the acquisition of Home Credit in the Philippines, we have achieved another significant milestone in our ASEAN expansion strategy through the successful execution of our medium-term business plan. 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.”
“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.”
This transaction is set to bolster the business operations of Home Credit Philippines 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 Philippines is expected to retain its brand and continue 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.
Home Credit Philippines is a financing company duly licensed and supervised by the Securities and Exchange Commission (SEC) and by the Bangko Sentral ng Pilipinas (BSP).
Home Credit Philippines is a consumer finance provider that promotes the principles of financial inclusion and safe lending, providing world-class financing services to qualified customers. Home Credit arrived in the Philippines back in 2013 and within 9 years, the brand has helped close to 10 million customers to purchase the things they need through fast, convenient, and affordable financing in more than 15,000 partner stores nationwide.
In 2018, Home Credit was granted the license to operate as a credit card issuer by Bangko Sentral ng Pilipinas (BSP), making it the first and only non-bank financial institution in the country to issue credit cards. Home Credit continues to expand its digital and online presence, and now has millions of users of its My Home Credit app.
MUFG 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.
Krungsri 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 (D-SIBs) with 78 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s largest financial organizations.
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 605 domestic branches (565 Banking Branches and 40 Auto Business Branches) and over 33,579 service outlets nationwide.
The Krungsri Group is the largest card issuer in Thailand with 10 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).