Security Bank buying 25% of Home Credit for P11B

Security Bank Corporation is purchasing a 25% share in Home Credit Philippines in a bid to further increase its presence in the consumer financing market.

In a statement, Security Bank said it entered into an agreement with MUFG Bank Ltd. for the acquisition of 25% ownership in HC Consumer Finance Philippines Inc., popularly known as Home Credit.

The purchase price was pegged at approximately P11 billion.

Security Bank said the planned acquisition underscores its commitment to enhancing its consumer finance capabilities and expanding its market presence.

Following the transaction, Krungsri (Bank of Ayudhya PCL and its business units) will continue to hold a 75% stake in Home Credit and remain the majority shareholder.

Home Credit is a leading consumer financing company in the country with over 11 million customers served, offering a comprehensive range of financial products, including point-of-sale (POS) loans, cash loans, revolving credit, and ancillary products such as insurance and warranty services.

Home Credit is also a POS market leader with strong partnerships with top retailers and brands and a nationwide presence covering more than 15,000 POS locations.

“As we welcome Home Credit into the Security Bank family, we’re excited by the strategic benefits this acquisition brings,” stated Sanjiv Vohra, Security Bank president and CEO.

Security Bank said the acquisition aligns with its vision to become the most customer-centric bank in the Philippines.

The bank said the transaction is subject to regulatory approvals, with target closing in the first quarter of 2025.

AlphaPrimus Advisors acted as financial advisors, and Picazo Law acted as legal counsel to Security Bank in this transaction. —VBL, GMA Integrated News