Krungsri (Bank of Ayudhya PCL) announced the successful completion of its 75% majority stake acquisition of HC Consumer Finance Philippines, Inc. (Home Credit in the Philippines), a consumer finance business in the Philippines, in which MUFG concurrently completed the other 25% stake. This strategic move aligns with Krungsri's business strategy to expand its presence and further strengthen its businesses in ASEAN.
With this, the Bank also successfully acquired 100% of the share capital of HCPH Financing 1, Inc. and HCPH Insurance Brokerage, Inc., the supporting businesses of Home Credit in the Philippines.
Krungsri President and Chief Executive Officer Mr. 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 with medium-term economic growth rate range 6.0 - 6.5% per annum, 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. By leveraging our expertise in digital lending, we aim to deliver the enhanced experiences customers while unlocking significant growth potential. The successful acquisition reaffirms its commitment to providing suitable products and services that empower individuals and drive sustainable growth in the market," said Mr. Yamato.
Mr. David Minol, Home Credit Philippines' CEO added, "We are pleased to announce the turnover of Home Credit Philippines to our new shareholders Krungsri and MUFG, both global market leaders in the banking 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 in the past 9 years. We are optimistic of our future together."
"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," Mr. Minol added.
This transaction completion follows the announcement on the acquisition of the consumer finance business of Home Credit in both the Philippines and Indonesia on 24 November 2022. The acquisition process of Home Credit in Indonesia is currently underway and is expected to be completed by the fourth quarter of this year.