SECURITY Bank Corp., the country’s eighth largest universal bank in terms of assets, said on Friday that it had entered into an agreement to acquire a 25-percent stake in HC Consumer Finance Philippines Inc. (HCPH), better known as Home Credit Philippines, for approximately P11 billion.
In a disclosure, the bank said that its board had approved the acquisition of MUFG Bank Ltd.’s 25-percent stake in HCPC, with Thai bank Krungsri, or the Bank of Ayudhra PCL and its business units, retaining a 75-percent interest in the consumer financing company and remaining the majority shareholder.
The acquisition was said to part of a strategic move to enhance Security Bank’s consumer finance capabilities and expand its market presence across the country.
“As we welcome Home Credit into the Security Bank family, we’re excited by the strategic benefits this acquisition brings,” Security Bank President and CEO Sanjiv Vohra said.
“This is a tremendous opportunity to leverage synergies, offer innovative lending solutions, and support financial inclusion,” he added.
The transaction is still subject to regulatory approvals. The target closing of the deal is the first quarter of next year.
Home Credit is a consumer financing company in the Philippines with over 11 million customers. It offers point-of-sale (POS) loans, cash loans, revolving credit and ancillary products such as insurance and warranty services.
“We are delighted to enter into this agreement with Security Bank as we believe that Security Bank will complement Krungsri in Home Credit Philippines,” said Yasushi Itagaki, chief operating officer and global commercial banking business head at MUFG.
Itagaki added that Security Bank’s on-the-ground presence and understanding of the local market should support continued growth for Home Credit Philippines.
Security Bank said the planned acquisition marked eight years of a strategic alliance with MUFG and represented its second partnership with Krungsri after the SB Finance Inc. joint venture.
AlphaPrimus Advisors was tapped as financial advisor and Picazo Law acted as the bank’s legal counsel for the transaction.
Shares of Security Bank on Friday closed firmer by P1.30, or 1.52 percent, to P86.80 apiece while the benchmark Philippine Stock Exchange index dropped by 0.37 percent.
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