Financiera Independencia to Acquire Apoyo Economico Familiar and Apoyo Financiero
Transaction Highlights:
- Further increases Independencia's market presence and geographic reach allowing the Company to establish a strong presence in
Mexico City and the Metropolitan area, a market where Independencia does not currently have a personal loans operation, and strengthen its presence in the Southeastern states ofMexico - Leverage an operational model that has proved to be highly effective in large cities, like
Mexico city, into new markets with similar characteristics - Gain access to a highly accomplished management team, with a strong track record in developing new microfinance markets
- Establishes a foothold within the US Hispanic community in
San Francisco, California , one of the fastest growing segments of the US population.
Mr.
Transaction Highlights (as of
- Provides unsecured personal loans to both the formal and informal sectors, ranging from Ps.2,000 to Ps.20,000 with an average term of 18 months
- Network of 97 branches in 11 of the 32 federal entities in
Mexico , 65 of those located inMexico City and the Metropolitan area. One branch inSan Francisco, California . Total outstanding loan balance of approximately Ps.817.3 million and approximately 110,000 clients. - Robust risk management policies and procedures in place. Total Non-performing loans plus write-offs to total loans of approximately 12.9%
Pro Forma Balance Sheet & Key Transaction Highlights
- The acquired companies will contribute approximately 12.7% to the combined entity total loan portfolio
- NPL ratio of the combined entity decreases from 10.5% to approximately 9.3%
- Coverage ratio increases from 68% to approximately 73%
- Equity to total assets ratio decreases from 34.7% to approximately 28.3% after the Transaction is finalized
|
Proforma Balance Sheet as of Sept. 30, 2010 |
|||||
|
(Millions of Mexican Pesos) |
FINDEP |
AEF |
AFI* |
FINDEP |
|
|
ASSETS |
|||||
|
Cash and Cash Equivalents |
1,179.8 |
41.7 |
6.2 |
1,227.7 |
|
|
Performing Loans |
5,017.5 |
777.4 |
30.1 |
5,824.9 |
|
|
Non-Performing Loans |
585.8 |
8.2 |
1.7 |
595.7 |
|
|
Total Loan Portfolio |
5,603.3 |
785.6 |
31.8 |
6,420.7 |
|
|
Allowances for Loan Losses |
(398.1) |
(34.6) |
(1.1) |
(433.8) |
|
|
Total Loan Portfolio - Net |
5,205.2 |
751.0 |
30.7 |
5,986.8 |
|
|
Fixed Assets |
378.6 |
95.4 |
0.0 |
474.0 |
|
|
Differed Taxes and Other Assets |
1,836.8 |
62.9 |
1.6 |
2,883.2 |
|
|
Total Assets |
8,600.3 |
951.0 |
38.5 |
10,571.8 |
|
|
LIABILITIES |
|||||
|
Bank and Other Entities Loans |
5,170.6 |
704.0 |
- |
7,054.6 |
|
|
Derivative Financial Instruments |
166.6 |
- |
- |
166.6 |
|
|
Other Accounts Payable |
275.2 |
64.3 |
18.6 |
358.1 |
|
|
Total Liabilities |
5,612.4 |
768.3 |
18.6 |
7,579.3 |
|
|
Total Stockholders' Equity |
2,987.9 |
182.7 |
19.9 |
2,992.5 |
|
|
Total Liabilities and Stockholders' Equity |
8,600.3 |
951.0 |
38.5 |
10,571.8 |
|
|
* USD converted at an exchange rate of Ps. 12.40 / US dollar for comparison |
|||||
Closing
The transactions are expected to close during 1Q11, and will be financed with the Company's cash reserves and available lines of credit. The acquisition of AEF is subject to the satisfaction of customary conditions to closing, including the approval of
Conference Call to Discuss the Transaction
Independencia will hold a conference call to discuss the transaction with the investment community tomorrow,
A replay will be available between
A slide presentation will also be available beginning
About Financiera Independencia:
Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in Financiera Independencia's filings with the
This press release does not constitute an offer for the sale of or a solicitation of offers to purchase any securities. The shares expected to be issued in the capital increase will not be registered under the US Securities Act and may not be offered or sold in
SOURCE


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