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Central Europe
July 21, 2017 www.intellinews.com I Page 10
Home Credit China signs convertible loan deal Czech with PAG Capital Asia
bne IntelliNews
Consumer loans group Home Credit on July 18 signed a CZK7.4bn ($327.4mn) convertible-loan and strategic partnership agreement at Prague Castle with one of Asia's biggest private equity investment funds, PAG Capital Asia of Hong Kong.
“PAG... intends to invest over RMB2bn (€278mn) into a Hong-Kong based subsidiary of Home Credit B.V. with an intention to become a value- added minority shareholder of the group’s operations in China within three to five years following the investment, upon fulfilment of regulatory and contractual conditions,” Home Credit said in a press release. “HCBV and PAG envision a long-term strategic partnership with
a goal to eventually list Home Credit China's operations on an internationally recognised stock exchange, subject to all necessary regulatory approvals,” it added.
Home Credit's majority owner, PPF financial group, has started initial talks with investment banks in London on the possible listing of the China operation, Czech financial daily Hospodar- ske noviny reported on July 18.
The convertible loan amount is equivalent to about 10% of the value of Home Credit China. The deal for the credit and partnership was signed in the presence of Czech President Milos Zeman, who has made boosting Czech-Chinese trade and investment a key objective of his presidency.
Home Credit requires PAG’s help to integrate better into the Chinese environment, co-owner Jiri Smejc told the daily. The newspaper added that Smejc and Home Credit co-owner Petr Kellner, the wealthiest Czech individual, can repay the loan within five years or instead allow PAG to convert it to equity.
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