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Central Europe
July 21, 2017 www.intellinews.com I Page 11
Home Credit specialises in consumer loans in emerging markets, including Russia, a major market for the group. Nonperforming loans in Russia particularly have in recent years hurt PPF, the personal vehicle of Petr Kellner, Central Eu- rope's richest man.
Kellner has been a major lobbyist in Prague's courting of China over the past couple of years. China is Home Credit's largest and fastest- growing market, with €7.5bn in total assets
and more than 13.2 million active customers recorded at the end of Q1 this year, the company said. Home Credit added that it is the market leader in China in point-of-sale (POS) lending and was operating more than 178,000 sales points throughout the country as at the end of Q1 2017.
“We are very pleased to form a partnership with one of the world’s most innovative consumer finance providers. We are happy to be able to contribute our knowledge in the China market to help Home Credit further grow and better serve its customers. We look forward to working with Home Credit Group as they continue to grow their operations in China,” said Weijian Shan, group chairman and CEO of PAG.
“This agreement is the first step in what we hope will become a long-term partnership with PAG, allowing us to benefit from the expertise of a local shareholder to further develop our business and underpin economic growth in China,” said Šmejc, chairman of the board of directors and group chief executive officer at HCBV.
Investors to begin due diligence at airBaltic
bne IntelliNews
A number of investors are set to shortly begin due diligence at Latvian flag carrier airBaltic, the Bal- tic state’s transport minister said on July 18.
Riga is seeking a strategic investor in the airline. The government hired financial advisory company Lazard Freres to help find investors and finance for airBaltic in December.
The company has been presented to more than 40 potential investors so far, with several to begin due diligence at airBaltic soon, Transport Minister Uldis Augulis said, according to Leta. There are no Russian companies among the potential inves- tors, the minister added.
Riga has long said that last year‘s deal with Ger- man investor Ralf-Dieter Montag-Grimes, which
put €52mn into airBaltic on top of a government loan of €80mn, is not the final arrangement for the company and that a strategic investor would be welcome. Grimes later sold his stake to Danish businessman Lars Thuesen.
The government wants a strategic investor to take over a 49% stake in the airline, while Riga will retain the remaining 51%.
Riga has been keen to strengthen airBaltic and expand its operations into neighbouring Baltic markets in order to make it more attractive for a major privatisation push. The demise of Estonia's flag carrier, as well as an effort to build a new national airline in Lithuania, has only encouraged that push.