Italy-based Compass Banca has agreed to acquire a 19.9% stake in BFI Finance Indonesia, an Indonesian sales financing company, from a consortium led by Trinugraha for an undisclosed price.
BFI Finance is an independent consumer credit operator in which the Trinugraha consortium currently holds a stake of 45.7%.
On the other hand, Compass Banca is a consumer credit provider in Italy. It is owned 100% by Italian investment bank Mediobanca and upon completion of the transaction, it will become one of the largest shareholders in BFI Finance.
According to Mediobanca, an additional stake of 11% in the Indonesian consumer credit operator will be purchased by StarFinance, a special purpose vehicle (SPV) made up of certain Italian private investors.
Mediobanca CEO Alberto Nagel said that the transaction is a further step in the company’s path to growth and is part of a strategy to make targeted acquisitions to boost volumes and margins in several specialized banking activities.
Nagel said: “The work done in these years has positioned Compass stably as one of the leading consumer credit players in Italy, and a significant contributor to the increase in Group revenues.
“BFI is the ideal option with which to continue this growth story and develop synergies, based on the expertise which Compass has acquired in more than 60 years of operating in this business”.
Established in 1982, BFI Finance has a market share by total loans of about 3% in Indonesia. Its distribution network includes more than 350 outlets in Jakarta and other main locations in the country that are split between 220 branches and more than 130 kiosks.
The consumer credit operator also has major partnership agreements with car dealers and independent agents, and also with telemarketing systems. Its business focuses on the financing of cars and motor vehicles.
Compass Banca is expected to close its transaction by the year end, subject to receipt of relevant authorizations.