South Korea' KB Kookmin Card acquired 80 percent an Indonesian multifinance firm, PT Finansia Multi Finance (FMF) for US$81.3 million to expand its presence in the Southeast Asia - Photo by the Company

JAKARTA (TheInsiderStories) – South Korea’ KB Kookmin Card acquired 80 percent an Indonesian multi-finance firm, PT Finansia Multi Finance (FMF) for US$81.30 million to expand its presence in the Southeast Asian country, said the management on Nov. 20. The unit of KB Financial Group plans to complete the deal by the first quarter of 2020.

FMF is a company engaged in the field of financing since 1994 and obtained a business license from the Minister of Finance on Sept. 14, 1994. The company with brand Kreditplus focus on motorcycle, car and heavy equipment financing services.

Before acquired Kreditplus, last February, othe unit of KB Financial Group, KB Capital, has bought 85 percent shares of other local multifinance company, PT Sunindo Parama Finance, owned by Sun Motor Group. In Nov. 4, Kookmin Bank allowed to acquire 40 percent stake of medium lender, PT Bank Bukopin Tbk (IDX: BBKP).

In 2018, the South Korean bank bought 22 percent shares of the bank with worth of Rp1.55 trillion. The other shares owned by Bosowa Corporation 23 percent, Indonesian government 8.92 percent, Employee 6,62 percent, and public 39,07 percent.

According to the Financial Service Agency’ chief, Heru Kristiyana, at present, Kookmin Bank is negotiating with Bosowa to acquire its shares. If the lender wants to increase its ownership above 40 percent, he said, they must obtain permission from the agency.

The company now in the process to release 2.73 billion shares or 30 percent of enlarged and paid up capital with offering price Rp570 a share. Eko Rachmansyah Gindo, the president director revealed, the right issue aims to improve its capital adequacy ratio to 14 percent, from now at 13.48 percent.

FMF has a total assets Rp15.50 trillion (US$217 million). As of October 2019, Kreditplus’ financing through Bank Bukopin reached Rp1.2 trillion and has exceeded this year target Rp1 trillion. Gindo expect the kreditplus financing is targeting grow double in 2020.

KB Kookmin Card provides payment services, financial services, installment financing and leasing, and other services in South Korea. While its holding, KB Financial Group, is among the four largest banks ranked by asset value in South Korea at the end of March 2014.
Written by Staff Editor, Email: theinsiderstories@gmail.com