Home Credit Indonesia to Lower Cost of Fund through Synergy with MUFG

By Editorial Team 09/03/2023
money injection
Summary

Home Credit International (Home Credit Group), Home Credit Indonesia's parent company, is currently awaiting approval from the Financial Services Authority (OJK) for the acquisition of its business unit by Mitsubishi UFJ Financial Group (MUFG). Chief Executive Officer (CEO) and Executive Director Radek Pluhar said the acquisition process is progressing smoothly.

"The transaction is subject to regulatory approval. We have submitted it to OJK. We believe that the acquisition will be completed at the beginning of the second semester of this year, he said during a media roundtable held in Jakarta on Wednesday.

In Nov 2022, MUFG acquired PT Home Credit Indonesia through two subsidiaries, PT Adira Dinamika Multi Finance Tbk (Adira Finance) and Bank of Ayudhya Public Company Limited (Krungsri), valuing EUR 209 million or around Rp 3.1 trillion.

Radek further explained that MUFG already has a banking business through PT Bank Danamon Tbk (BDMN) and motor vehicle financing through PT Adira Dinamika Multi Finance Tbk (ADMF), while Home Credit Indonesia is responsible for consumer electronics and household financing. He believes that this acquisition will be a perfect fit for both parties.

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