On 3rd August 2018, Compass, 100%-owned by Mediobanca, announced an agreement to acquire 19.9% of BFI Finance Indonesia (“BFI Finance”) - a leading independent player in consumer credit in Indonesia, boasting outstanding profitability levels, growth rates and asset quality - from the Trinugraha consortium that owned 45.7% of the share capital.
The transaction was part of the continuous process of the Mediobanca Group of redeploying capital to specialized, high-growth and highly-profitable banking businesses, and it provided Compass an opportunity for additional growth to complement its impressive growth story in the Italian market.
Since the signing of the purchase agreement, the Trinugraha Consortium together with the management of BFI actively worked to solve some issues primarily linked to a pre-existing legal case in Indonesia involving previous BFI shareholders and that impeded the completion of the transaction. These issues were definitively resolved at the end of 2019 unlocking the relevant regulatory authorisation processes in Indonesia and in Europe, necessary for the closing of the transaction.
Since then, the health emergency linked to COVID-19 has progressively changed in unrealistic the financials of the agreement and Compass operative priorities.
In light of these considerations, on 30th April 2020 Compass and the Trinugraha Consortium mutually agreed to terminate the agreement signed in August 2018.
Once the current economic crisis has stabilised, Compass intends to resume the review of a possible expansion by exploring investment opportunities in markets that present a favourable macroeconomic context and potential targets in the consumer finance sector that can offer growth and profitability for the Mediobanca Group.
Milan, 30 April 2020