Compass, a 100% subsidiary of Mediobanca, has renounced the agreement, announced in August 2018, for the acquisition of 19,9% of BFI Finance Indonesia (“BFI”) from the Trinugraha consortium owning 45,7% of the share capital . Mediobanca itself communicates it with a note in which all the details of the operation are recalled and the reasons that led to the renunciation of continuing with the agreement are explained.
BFI is, the note specifies, one of the main independent players in the consumer credit market in Indonesia, a success story in terms of growth rates, profitability and capital solidity. The transaction was part of Mediobanca's process of reallocating capital in high-growth and profitable specialist banking activities and represented an additional growth option for Compass, completing the already excellent path implemented on the domestic market.
Since the signing of the agreement, the Trinugraha consortium, in concert with the BFI - the Mediobanca press release specifies - has undertaken to resolve the elements impeding the completion of the transaction with Compass, including a pre-existing legal dispute in Indonesia resolved in a definitive at the end of 2019, thus unblocking the local authorization procedure prodromal to that with the European Central Bank, necessary for the closing of the transaction.
“Since then, the onset of the health and economic emergency linked to COVID-19 has made the economic terms of the agreement no longer current and changed Compass' operational priorities. In light of this, on 30 April Compass and the Trinugraha Consortium by mutual agreement canceled the agreement signed in August 2018”, is the conclusion.
Once the phase of economic-financial crisis linked to the health emergency has been overcome, Compass "intends to resume the assessment of a possible expansion on markets that present a favorable macroeconomic context through "target" financial companies capable of guaranteeing growth and profitability to the Mediobanca Group ”.
