Japan’s MUFG is selling its 25% stake in Home Credit Philippines (HCPH) to Security Bank, an affiliate in the Philippines.
The deal, valued at approximately JPY26.5 billion (approximately US$177 million), will see Security Bank acquire this stake.
Meanwhile, MUFG’s Thailand subsidiary, Krungsri, retains its existing 75% ownership in HCPH.
Despite the sale, MUFG will maintain indirect control over HCPH through its ownership in both Security Bank (20%) and Krungsri (76.88%).
The transaction awaits regulatory approval and is expected to close in the first quarter of 2025.
HCPH is a consumer finance provider in the Philippines, offering a variety of financial products to over 11 million customers.
These offerings include point-of-sale loans, cash loans, revolving credit, and ancillary products such as insurance and guarantee services.
The company has a strong retail network with over 15,000 point-of-sale locations across the country.
This strategic move aligns with MUFG’s broader goal of expanding its presence in Southeast Asia by collaborating with local banks.
By leveraging Security Bank’s market expertise, MUFG aims to further penetrate the Philippine retail market.
This transaction also builds on the existing partnership between Krungsri and Security Bank, who jointly operate SB Finance.
Featured image credit: Edited from Freepik
