Sumitomo Mitsui looks to acquire distressed lender Promise Co.
Sumitomo Mitsui Financial Group, Japan’s second-largest lender, will make a $2.6 billion tender offer for all shares it does not already own in distressed consumer lender Promise Co.
Sumitomo Mitsui currently holds 21% of Promise and declared to the Tokyo Stock Exchange that it would make a tender offer for existing and new shares by the end of the year. It has offered to pay JPY780 yen for each outstanding share, which translates to an 18% premium from Promise's September 30 closing price.
According to Bloomberg, Promise and other consumer lenders have struggled after regulators mandated cuts in loan rates and refunds of overcharged interest. The company expects to post a JPY208 billion ($2.7 billion) loss for the six months ending September 30.
Promise is the latest in a string of distressed Japanese financial assets that have been snapped up by private equity and banking players. Last week, Aeon Bank, a unit of the retail and financial conglomerate Aeon Group, was said to be in the final round of talks to purchase the bankrupt Incubator Bank of Japan, and in June, Takefuji received court approval for a takeover by Korean firm A&P Financial, which beat Cerberus Capital Management, TPG and J Trust to buy the asset.
Earlier this year, Lone Star agreed to take ownership of Tokyo Star Bank from private equity firm Advantage Partners.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.