August 29, 2025 | 12:00am
MANILA, Philippines — Safety Financial institution Corp. has accomplished the acquisition of a 25-percent stake in shopper finance big HC Shopper Finance Philippines Inc. (Residence Credit score Philippines) from its strategic accomplice MUFG Financial institution Ltd., in a deal valued at P11.6 billion.
In a disclosure to the Philippine Inventory Alternate yesterday, Safety Financial institution stated it initially paid P10.37 billion on Could 2 for the bottom value of the shares and settled a further P1.23 billion adjustment on Aug. 28, bringing the overall transaction worth to P11.59 billion.
The acquisition covers 19.06 million shares, consisting of 250,000 frequent shares, 16.31 million most well-liked shares and subscription rights to 2.5 million most well-liked shares. MUFG, which owns 20 % of Safety Financial institution, bought the shares as a part of a broader partnership among the many three monetary establishments.
“This strategic funding permits Safety Financial institution to boost our involvement within the quickly increasing shopper finance sector,” the financial institution stated. “By doing so, we will unlock new alternatives to raised deal with the evolving monetary wants of Filipinos.”
Residence Credit score Philippines, a market chief in point-of-sale financing, serves greater than 11 million clients nationwide via loans, money advances and revolving credit score merchandise.
Safety Financial institution stated the funding is “earnings accretive,” which means it could immediately increase the lender’s earnings.
The financial institution expects the deal to strengthen its long-term progress technique, speed up innovation in shopper lending, and help monetary inclusion efforts within the nation.
“This landmark funding positions us strategically inside the market, leveraging Residence Credit score’s intensive attain and experience. It’s going to contribute positively to our earnings and monetary efficiency whereas enhancing our skill to serve Filipino shoppers extra successfully,” the financial institution added.
The transaction, authorized by Safety Financial institution’s board in November 2024, was accomplished following regulatory clearances and customary closing situations.
