Nishimura, Clifford Chance in Home Credit Philippines and Indonesia buyouts

Nishimura, Clifford Chance in Home Credit Philippines and Indonesia buyouts

Nishimura & Asahi and Clifford Chance advised Mitsubishi UFJ Financial Group (MUFG) and Netherlands-based Home Credit Group, respectively, on MUFG plans to acquire stakes in the Philippines and Indonesia units of the consumer finance company for EUR596 million (USD620 million).

MUFG plans to acquire 100% in Home Credit Philippines and an 85% stake in Home Credit Indonesia.

Partners Yusuke Yoshimoto, Susumu Tanizawa and Peter G Armstrong in Tokyo, and Dominik Kruse in Frankfurt led the Nishimura & Asahi team, as well as Jakarta-based Luky Walalangi and Miriam Andreta of Indonesian associate office Walalangi & Partners. Counsels Takehiro Sekine in Tokyo and Michael Douglas in Ho Chi Minh City, associates Benjamin Kwok Chong Ren and Andhika Indrapraja in Tokyo, and Steffi Sales in Singapore, also assisted on the deal.

The Clifford Chance team was co-led by Hong Kong-based partners Emma Davies and Bryan Koo, as well as the Singapore managing partner Valerie Kong, with the help of senior associate Matt Wentz in Singapore.

The Hong Kong team advising on the M&A aspects included consultant Ryan Wong, and associates Ryan Siu and David Ho. In London, partner Zayed Al Jamil, senior associate Sally Murphy, and lawyers Lauren Murphy and Linda Agaby advised on the tech and data separation aspects, and partner Nicola Hemsley and director Edward Page advised on tax aspects.

The acquisition will be completed in 2023 through MUFG’s Japanese unit MUFG Bank, Thai unit Bank of Ayudhya (commonly referred to as Krungsri) and Indonesian unit Adira Dinamika Multi Finance, a subsidiary of Bank Danamon, which is an affiliate of MUFG. The deals are subject to Krungsri’s shareholders and customary regulatory approvals.

Krungsri and MUFG Bank are to purchase 75% and 25%, respectively, of Home Credit Philippines for a valuation of EUR406 million. In Indonesia, Krungsri, Adira and an Indonesian investor as required by local regulations are to purchase 75%, 10%, and 15%, respectively of Home Credit Indonesia for a valuation of EUR209 million.

Founded in the Czech Republic and headquartered in the Netherlands, Home Credit is majority owned by international investment firm PPF Group. Home Credit is mainly engaged in consumer lending, primarily in point-of-sale loans, with current operations in seven countries in Central and Eastern Europe and Asia.