JAKARTA, October 3, 2023 – PT Home Credit Indonesia (“Home Credit”), a purpose-driven financing company, today announced its new shareholders following the completion of its acquisition by a consortium.
The consortium taking ownership of the Home Credit Indonesia business is led by Japan’s Mitsubishi UFJ Financial Group (“MUFG”) and includes Bank of Ayudhya Public Company Limited ("Krungsri"), the fifth-largest financial group in Thailand, and PT Adira Dinamika Multi Finance Tbk. ("Adira Finance"), a leader in vehicle financing in Indonesia.
The deal was completed with an estimated acquisition value of EUR 209 million (Rp 3.4 trillion). The final consideration is subject to one-to-one adjustment based on the equity book value at closing of the transaction. The transaction is set to bolster the business operations of Home Credit Indonesia as it continues to provide more Indonesians with access to credit while building on Krungsri’s expertise as one of Thailand’s finance leaders.
"This transaction stands as a testament to the remarkable success and robust presence that Home Credit has achieved in the country. Since commencing operations in Indonesia back in 2013, Home Credit has consistently delivered a diverse array of affordable financial services, serving the needs and improving the lives of over six million individuals nationwide. Our commitment to fostering connections between retailers, important service providers, and consumers has created an ecosystem characterized by responsible, reliable, and affordable access to financial services," remarked Animesh Narang, Chief Executive Officer of Home Credit Indonesia.
Animesh added that this transaction is expected to unlock significant synergies within the Home Credit and MUFG ecosystem, galvanising Home Credit's business and facilitating broader access to financing for Indonesia consumers. By extending a comprehensive range of financial services, the partnership aims to create new possibilities for the people of Indonesia, empowering them to enhance their lives.
"We are tremendously excited about the promising future growth opportunities that await Home Credit Indonesia in collaboration with MUFG, a leading global financial institution. This partnership is poised to significantly enhance Home Credit Indonesia's business, extending its reach to even more underserved communities. The successful completion of the transaction in Indonesia, alongside a similar transaction involving our Philippines business in June 2023, underscores the Group’s strength in developing exciting businesses," said Radek Pluhar, CEO of Home Credit Group.
Kenichi Yamato, Krungsri President and Chief Executive Officer said, “Krungsri has continued to extend our footprint to connect customers’ needs across the ASEAN region. With the successful acquisition of Home Credit Indonesia, we now have a robust presence in five ASEAN countries, including Lao PDR, Cambodia, the Philippines, Vietnam, Indonesia, and a representative office in Myanmar. Hence, this strategic achievement further elevates our positioning as a regional bank in ASEAN market. Moving forward, Krungsri is committed to forging a close collaboration with Home Credit by leveraging our expertise in consumer finance and risk management to expand new business partners, grow customer base, and deliver innovative products and services that cater to the evolving needs of Indonesia market.”
Dewa Made Susila, President Director of Adira Finance, said “We are pleased with the successful acquisition process of Home Credit Indonesia. For Adira Finance, this is considered a step towards strategic collaboration enabling us to reach a wider market as well as to strengthen our market presence in the country. This initiative reflects a concrete synergy between Adira Finance and MUFG Group entities to provide optimal services for our customers and business partners.”
The completion of this acquisition marks a pivotal milestone, as it brings together the unique strengths of each business, creating a powerful ecosystem geared towards delivering high quality financial services to underserved communities.
Home Credit's financing services have expanded their reach significantly and are now available through an extensive network of over 21,000 retail partners nationwide, as well as on various e-commerce platforms. In addition to consumer financing (goods and cash), the company offers a diverse range of services, including protection, e-wallet, and pay-later options, further enhancing the comprehensive support provided to its valued customers.
Home Credit Indonesia is expected to retain its brand and continue its usual operations under the same local leadership team. The company aims to further grow its business and consumer finance portfolio as it leverages being part of the MUFG ecosystem.
About Krungsri (www.krungsri.com):
Krungsri (Bank Ayudhya PCL and its group companies) is the fifth-largest financial group in Thailand in terms of assets, loans, and deposits. It is one of the six domestically important systemically important banks in Thailand with a 78-year history in the country. Krungsri is a strategic member of Mitsubishi UFJ Financial Group, the largest financial group in Japan. Krungsri provides a complete range of banking services, consumer financing, investment, asset management, and other financial products and services to individual customers, SMEs, and large corporations through its 603 domestic branches and over 33,918 service outlets nationwide. The Krungsri Group is the largest issuer of credit cards in Thailand, with 10 million credit cards, sales finance, and personal financing accounts in its portfolio. It is also a major provider of car financing (Krungsri Auto), one of the fastest-growing asset management companies (Krungsri Asset Management), and a pioneer in microfinance (Ngern Tid Lor).
About MUFG (www.mufg.jp/english):
Mitsubishi UFJ Financial Group, Inc. is one of the world's leading financial groups. Headquartered in Tokyo and with a history of over 360 years, MUFG has a global network with around 2,400 locations in more than 50 countries. The group has approximately 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer financing, asset management, and leasing. MUFG's mission is to "be the world's most trusted financial group" through close cooperation among its operational companies and flexible response to all the financial needs of its customers, serving the community, and promoting sustainable growth for a better world. MUFG's shares are traded on the Tokyo, Nagoya, and New York stock exchanges.
About Adira (www.adira.co.id):
PT. Adira Dinamika Multi Finance, Tbk. (Adira Finance) was established in 1990, originally operating as an automotive financing company before expanding into motorcycle financing in 1997. In 2004, Adira Finance listed its shares on the Indonesia Stock Exchange and was later acquired by PT Bank Danamon Indonesia. Adira Finance is part of the MUFG Group as a subsidiary of Bank Danamon, with 92.07% ownership, of which 92.5% of Bank Danamon's shares are held by MUFG.
About Home Credit Indonesia: (https://www.homecredit.co.id/):
Home Credit Indonesia is a purpose-driven financing company that provides diverse range of financial services, including goods and cash financing, protection, e-wallet, and pay-later options. Established in 2013, Home Credit Indonesia has served over 6 million customers by providing a hassle-free experience with responsible and transparent financial services to help create possibilities for customers and society. With more than 21,000 sales points, their current partners include leading manufacturers and retailers both offline and online, such as Samsung, VIVO, OPPO, Realme, Erafone, Informa, Electronic City, Hypermart, Lotte Mart, ACE Hardware, Gramedia, Tokopedia, Bukalapak, Blibli, and others. For the latest news and more information about Home Credit Indonesia, please visit www.homecredit.co.id. ‘Like’ Home Credit Indonesia on Facebook, follow the company's LinkedIn page at Home Credit Indonesia, and follow us on Instagram at @homecreditid.