MUFG To Buy HC Consumer Finance Philippines, 85% Stake In PT Home Credit Indonesia

Mitsubishi UFJ Financial Group Inc. or MUFG (MTU), a Japanese bank holding and financial services company, announced Thursday that the company and MUFG Bank, Ltd. have decided to acquire HC Consumer Finance Philippines, Inc. and 85 percent stake in PT Home Credit Indonesia or HC Indonesia, both of which are subsidiaries of Dutch consumer finance company Home Credit B.V.

The acquisition cost is around 596 million euros, equivalent to approximately 87 billion Japanese yen.

The acquisition will bhe conducted through MUFG Bank and its consolidated subsidiaries Bank of Ayudhya Public Company Limited or Krungsri, a commercial bank in Thailand, and PT. Adira Dinamika Multi Finance, a finance company in Indonesia.

The deal is expected to be completed within 2023, subject to the receipt of approvals from the relevant regulatory authorities.

After the completion of the acquisition, Krungsri will hold 75 percent of the shares of HC Philippines and 75 percent of the shares of HC Indonesia; while MUFG Bank will hold 25 percent of the shares of HC Philippines, and ADMF will hold 10 percent of shares of HC Indonesia.

MUFG and MUFG Bank said they aim to strengthen their business in Southeast Asia through the establishment of business platforms in the region in collaboration with partner banks in which MUFG bank has invested.

In Japan, Mitsubishi UFJ Financial shares were trading at 750 yen, up 2 percent.

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