Peru-based financial services company Credicorp has agreed to acquire a 74.49% stake in Banco Compartir, a microfinance bank in Colombia, for COP254.8bn (£63.1m).
Image: Credicorp to acquire majority stake in Banco Compartir. Photo: Courtesy of Nattanan Kanchanaprat/Pixabay
Credicorp will acquire the stake from a group of Banco Compartir shareholders including Colsubsidio, Cafam, Comfandi, Comfenalco Cartagena, and Accion.
Subject to regulatory approvals, the deal is expected to be closed in the fourth quarter of this year.
Established in 1985, Banco Compartir provides microfinance and small and medium-scale enterprise (SME) financing solutions to micro entrepreneurs.
The bank is supported by a workforce of 1,800 employees, serving 450,000 customers through its 104 branch network across Columbia. As of 31 December 2018, the bank had a loan portfolio of $243m (£191.5m), with total deposits of $228m (£179.7m) and a book value of $50m (£39.4m).
With the acquisition, Credicorp aims to build its microfinance business in Latin America and will build upon the acquisition and integration of Mibanco in Peru and the creation of Encumbra in Colombia in 2014.
Through Banco Compartir, Credicorp believes that it can increase its footprint that covers that covers 27 out of 33 departments.
The Peruvian financial services provider aims to create significant value from the acquisition by leveraging Mibanco’s capabilities and improving commercial productivity and maintaining Banco Compartir’s best practices.
Maj Invest Financial Inclusion Fund II will continue to hold the remaining 22.45% stake in Banco Compartir. Maj Invest Financial Inclusion Fund II is a private equity fund managed by Maj Invest from Denmark, with more than $10bn (£7.8bn).
The remaining 3.06% stake will be held by the other 36 shareholders who might decide to sell their shares to Credicorp under the same terms, before the deal is closed.
Besides Peru, Credicorp has its presence in Chile, Colombia and Bolivia. The company has four lines of business including Universal Banking, through Banco de Credito del Peru-BCP and Banco de Credito de Bolivia; Microfinance, through Mibanco and Encumbra; Insurance & Pension Funds, through Grupo Pacifico and Prima AFP and Investment Banking & Wealth Management, through Credicorp Capital, Wealth Management at BCP and Atlantic Security Bank.