Image: Reuters Berita 24 English -According to chief executive Jiri Smejc, the Czech investment firm PPF, whose founder and billionaire foun...
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| Image: Reuters |
Berita 24 English -According to chief executive Jiri Smejc, the Czech investment firm PPF, whose founder and billionaire founder Petr Kellner passed away last year, plans to sell its once-flagship consumer loan business in China and concentrate acquisitions on Europe.
PPF, which has assets worth 42.2 billion euros and reported a profit of 239 million euros ($251 million) last year, also seeks partners for its Home Credit consumer lending operations in southeast Asia, he said, in order to obtain affordable and reliable finance.
According to Smejc, "We are attempting to locate a strategic partner there (in China) who would obtain majority and then entirely take over the firm, because we believe that it is impossible to function in China under the existing circumstances."
In the ensuing six months, he said, the committee would monitor the situation's development.
One of the top consumer finance companies in the world, Home Credit, once relied heavily on the Chinese market. Before the epidemic struck, it expanded quickly there, with a tightening of laws and access to funding.
The Home Credit group lost 584 million euros in 2020 in addition to 303 million euros last year.
In order to have access to low-cost finance via deposits, which are more stable than markets, PPF needed partners with banking licences, according to Smejc. PPF sought to grow Home Credit in India, Vietnam, Indonesia, and the Philippines.
Without naming any parties, he indicated that the corporation was in talks.
According to Smejc, PPF was looking for private equity or family office partners to generate money for acquisitions in Europe. PPF has investments in financial services, telecom, media, mechanical engineering, and biotech.
Smejc stated that PPF planned to expand more generally outside of the Balkans, where it is strongly invested, adding that "we want the centre of gravity of our assets to be in Europe."
In a contract that offered him stock options for 10% of PPF shares, Smejc, a longtime business colleague of Kellner who died in a heli-skiing accident, took control PPF this month.
He stated once more that the company will entirely leave Russia.
($1 = 0.9529 euros)
