Research

Multifinance: Unlocking Value From M&A

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Algo Research Team

Industry | Jul 18, 2023 | Views: 147

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Key Summary:

  • Rising M&A activity in the sector
  • Is there more M&A to come? Potential bidders
  • YTD outperforming market, who's up for sale?

Recently, the headlines in multifinance sector have been dominated by M&A, especially after an announcement by MUFG and ADMF to consider a purchase of 81% (71%/10%, respectively) in Mandala Multifinance (MFIN) for IDR7tn (USD467mn) at an implied IDR3,300/share, suggesting a premium valuation of 2.7-2.8x PBV with 17-18% ROE.


Historically, fintech players have also been active in the sector. Over the past few years, the likes of Akulaku, Traveloka, Carro, Kredivo and Xendit have entered the sector to grow their business portfolio. Akseleran (AKSL) that is planning to go IPO is looking to get a multifinance firm using the proceeds, while Buana Finance (BBLD) has publicly mentioned that there are interests from investors to buy stake in the company.

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