The ex-manager wants to buy part of Home Credit. He offered a billion dollars

PPF Group has been testing the sale of some of its assets for a long time. In addition to the infrastructure holding Cetin Group, it is looking for investors primarily for the Home Credit installment group.

This is related to the overall transformation of the PPF Group, which wants to shift the focus of its activities from Asia to the stable developed markets of Western Europe and the United States.

At the same time, the first interested parties are starting to appear on the market. One of them is Pavel Vyhnálek, a former long-time manager of Home Credit in Asia, who helped Petr Kellner build markets in China, later in the United States, but also in Vietnam, Indonesia, India and the Philippines.

According to information from SZ Business, he is now interested in returning to this business. He interpreted to PPF Group an offer to buy its franchise in South and Southeast Asia, specifically in Indonesia, Vietnam and the Philippines, ie those for which it was responsible before leaving Home Credit at the end of 2019.

Today, it operates as a private investor operating in the private equity and venture capital markets. Manages an investment portfolio in the international financial market. “I don’t want to comment on it at all,” Pavel Vyhnálek, who is currently living in Hong Kong, told SZ Byznys.

According to information from SZ Byznys, Vyhnálek ​​has put together a group of investors who are willing to further develop the activities of the installment company in these countries. It is obvious that Vyhnálek ​​would take part in this as a manager.

The Home Credit International group, which operates in Russia, the Czech Republic and Slovakia in addition to Asia, is controlled by the PPF group (91.12 percent) and Jiří Šmejc (8.88 percent).

Jiří Šmejc did not want to comment on current events around Home Credit. PPF did not comment on the sent questions at first, later it denied the information. “Although the PPF Group never comments on market speculation by default, the statement in today’s article needs to be put into perspective. The fact that Pavel Vyhnálek, a former manager of the Home Credit Group, is negotiating with PPF Group to take over the Asian assets of Home Credit is nonsense that is not based on the truth. PPF and Home Credit have never received any such offer from Mr. Vyhnálek. “

According to information from SZ Byznys, not only PPF Group, but also Jiří Šmejc plans to gradually withdraw from Home Credit and strengthen in other areas of business, especially in Southeast Europe. According to a mutual agreement, Jiří Šmejc should sell his minority stake in the Home Credit Group to the PPF Group by the end of 2023.

Missed opportunity

According to SZ Byznys, PPF Group does not oppose Vyhnálek’s offer. However, PPF’s price ideas are higher and it is possible that PPF will want to include the installment business in other Asian countries for sale.

For example, the sale of the entire package of South Asian operations, including India, is at stake. As the agency reported in mid-September Bloomberg, the Home Credit business in Indonesia, Vietnam, the Philippines and India could be valued at $ 2 billion to $ 2.5 billion when sold.

PPF Group was already trying to sell part of the installment company Home Credit on the Hong Kong Stock Exchange in 2019, but the sale was withdrawn at the time because the company’s valuation did not correspond to the shareholders’ ideas. At the time, there was speculation of about eight billion dollars for the whole group. “They did not succeed in the global exit. Šmejc wanted a lot, so now it’s time to cut the group, “commented the financier, who did not want to be named.

After last year’s pandemic year, when the Home Credit Group laid off tens of thousands of employees, the group no longer reaches this value. This is mainly due to the Chinese market, which is the largest for Home Credit and experienced the biggest slump due to lockdowns.

A few days ago, the Lidovky.cz server published with a link to the Russian media that the PPF investment group is looking for buyers for Home Credit’s activities in Russia, while the Hungarian banking group OTP has allegedly shown interest. However, PPF Group called them market speculation.

The Home Credit Group, which provides consumer loans worldwide, reported a loss of 584 million euros (14.8 billion crowns) last year. A year earlier, it had a profit of 400 million euros. The reason for the loss was a pandemic situation.

Home Credit was founded in 1997. It operates in nine countries in Asia, Central and Eastern Europe and the former Soviet Union.

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