Czech firm PPF aims to exit China, wants partners for Europe acquisitions
PRAGUE (Reuters) – Czech funding group PPF, managed by the spouse of billionaire founder Petr Kellner who died final 12 months, goals to divest its as soon as flagship shopper lending enterprise in China and focus acquisitions on Europe, Chief Government Jiri Smejc mentioned.
PPF, which posted 239 million euro ($251 million) revenue final 12 months and had belongings of 42.2 billion euros, additionally needs to search out companions for its Residence Credit score shopper lending operations in southeast Asia to safe low cost and steady funding, he mentioned.
“We’re looking for a strategic companion there (in China) who will achieve majority and following that can utterly take over the agency, as a result of we imagine that with out that, it’s not possible to function in China underneath present circumstances,” Smejc instructed reporters.
He mentioned the group would see how this progressed within the subsequent six months.
China was a key marketplace for Residence Credit score, one of many world’s main shopper finance companies. It grew quickly there within the final decade earlier than being hit by the pandemic, tightening rules and entry to financing.
The Residence Credit score group misplaced 303 million euros final 12 months and 584 million in 2020.
PPF needed to develop Residence Credit score in India, Vietnam, Indonesia and Philippines however wants companions with banking licences to safe entry to low cost funding from deposits, which have been extra steady than markets, Smejc mentioned.
He mentioned the corporate was in talks with out naming events.
PPF, which has investments in monetary providers, telecoms, media, mechanical engineering and biotech, was on the lookout for personal fairness or household workplace companions to lift funds for acquisitions in Europe, Smejc mentioned.
“We wish the centre of gravity of our investments to be in Europe,” Smejc mentioned, including that PPF needed to increase extra broadly exterior the Balkans, the place it’s closely invested.
Smejc, a longtime enterprise companion of Kellner who died in a heli-skiing accident, took over PPF this month in a deal that gave him inventory choices for 10% of PPF shares.
He reiterated that the agency would utterly exit Russia.
($1 = 0.9529 euros)
(This story correctes so as to add dropped phrases “with out that”, paragraph 3)
(Reporting by Jan Lopatka; Modifying by Edmund Blair)
