DGAP-Ad-hoc: 4finance S.A. / Key word(s): Acquisition
4finance expands to South-East Asia with Philippines acquisition
- 4finance acquires 100% of digital lender Online Loans Pilipinas Financing, Inc.
- Deal adds major new market and annual revenues of €23m
17 May 2022. 4finance Holding S.A. (the "Group"), one of Europe's largest online and mobile consumer lending groups has expanded to South-East Asia with the acquisition of Online Loans Pilipinas Financing, Inc. (OLP).
The deal sees 4finance enter a market of 110 million people with an established and profitable digital lending business. OLP offers both instalment and single payment loans with a range of related services. OLP lends up to PHP 20,000 (EUR 362) as a single payment loan and up to PHP 30,000 (EUR 543) for instalment loans of up to six-months. OLP is registered as a financing company with the Securities and Exchange Commission of the Philippines.
The Group acquired 100% of the business for EUR 6.6 million, with an additional EUR 5.0 million of funding to replace existing debt. An earn-out payment may be payable subject to 2022 audited IFRS net profit.
OLP had a EUR 6.4 million net loan portfolio as of 31 Dec 2021, with total revenues of EUR 23.7 million and net profit of EUR 3.2 million for 2021. The business expects strong growth in net profit for 2022 and is ahead of its budget so far this year.
"The Philippines is a huge market with great potential. There is a significantly underserved group of creditworthy people who seek convenient and timely access to useful credit. Adding OLP to our Group brings increased revenue, geographic diversification, and access to a growing market," said 4finance CEO Kieran Donnelly.
"We have had the opportunity of watching the business for nearly a year to see how it grew and adapted to changing regulation, we believe it will be good fit in the Group."
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This announcement contains inside information as stipulated under the Market Abuse Regulation. Certain statements in this document are "forward-looking statements". These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements.
Leveraging automation and data-driven insights across the business, 4finance has grown rapidly, issuing over €9 billion since inception in instalment loans, lines of credit and single payment loans.
4finance operates a portfolio of market-leading brands offering simple, useful and transparent products to millions of customers. The Group provides convenient products in a responsible way to the many consumers who are often underserved by conventional providers.
The Group also offers deposits, in addition to consumer and SME loans through its TBI Bank subsidiary, an EU licensed institution with operations in Bulgaria, Romania and Greece.
17-May-2022 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|8-10 Avenue de la Gare|
|Grand Duchy of Luxembourg|
|ISIN:||XS1417876163, SE0006594412, XS1092320099, XS1094137806,|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange; Dublin|
|EQS News ID:||1354633|
|End of Announcement||DGAP News Service|
1354633 17-May-2022 CET/CEST