The transaction, valued at approximately P11 billion, underscores Security Bank’s focus on strengthening its consumer finance capabilities and expanding its market footprint, the bank said in a statement on Friday, Nov. 29, 2024..
Krungsri (Bank of Ayudhya PCL), a strategic member of the Mitsubishi UFJ Financial Group, will retain its 75-percent majority ownership of Home Credit Philippines.
Security Bank’s acquisition marks a strategic collaboration with Krungsri to enhance Home Credit’s growth in the local market.
Home Credit Philippines, a major player in the consumer financing industry, has served over 11 million customers. Its product offerings include point-of-sale loans, cash loans, revolving credit, and ancillary services such as insurance and warranties. The company boasts a robust network of over 15,000 point-of-sale locations nationwide.
Security Bank president and CEO Sanjiv Vohra highlighted the strategic value of the deal, stating the deal is “a tremendous opportunity to leverage synergies, offer innovative lending solutions, and support financial inclusion.”
Yasushi Itagaki, group COO-I of Krungsri, praised the agreement, emphasizing Security Bank’s local expertise. He noted that the partnership would bolster Home Credit’s market position and operational growth in the country.
Security Bank said the acquisition aligns with its vision of becoming the Philippines’ most customer-centric bank. It builds on the eight-year strategic alliance between Security Bank and MUFG, initiated in 2016, and follows their previous collaboration on SB Finance, Inc.
The deal is subject to regulatory approval and is expected to close by the first quarter of 2025. Financial advisory services were provided by AlphaPrimus Advisors, with Picazo Law acting as legal counsel for Security Bank.
