Credicorp plots microfinance expansion with Mibanco acquisition
The Peruvian financial holdco will have nearly 20% share of microfinance market with purchase
Peruvian-headquartered Andean financial holding group
Credicorp agreed on Saturday to buy 60.68% of Mibanco for
$179.5m, a deal that will give it control over a new
institution that will be the country’s largest
Credicorp is buying the business through its microlending
subsidiary Edyficar, saying bringing the two operations
together will generate extensive efficiencies and give the new
operation a strong branch network.
The transaction follows
Itaú-Unibanco’s agreement to buy Chilean
lender CorpBanca last month. The Brazilian bank says it is
looking to expand through acquisition into Peru and other
parts of Latin America.
Together, Edyficar and Mibanco account for 19.5% of the SME
and micro-lending market in Peru, and a 3.7% share of the
country’s total loan portfolio. The price equals
1.3x book value at the end of December, says Credicorp.
The deal is expected to close by March 28, although that can
be extended by two months if the necessary regulatory approvals
remain outstanding. Credicorp will launch a public tender for
the remaining shares once the purchase from ACP is closed.
ACP, which is selling Mibanco, owns stakes in a number of
microfinance businesses across Latin America. Mibanco has a
PEN4.5bn ($1.6bn) loan portfolio and Edyficar, PEN2.6bn.
Credicorp reported operating profit of $965m in 2013, down
2% year on year, although its post-tax profit fell 28.1% over
the same period, coming in at $567.1m. LF