Credicorp Ltd. [NYSE: BAP] spotted trading -5.59% off 52-week high price. On the other end, the stock has been noted 14.93% away from the low price over the last 52-weeks. The stock changed 1.53% to recent value of $238.37. The stock transacted 434314 shares during most recent day however it has an average volume of 374.44K shares. The company has 80.49M of outstanding shares and 48.75M shares were floated in the market.
Credicorp Ltd. [NYSE: BAP] announced that it has reached an agreement to acquire 74.49% of the capital stock of Banco Compartir S.A. (“Bancompartir”), one of the leading microfinance banks in Colombia, from a group of shareholders including Colsubsidio, Cafam, Comfandi, Comfenalco Cartagena, and Accion. Closing of the transaction, subject to certain regulatory approvals and other customary conditions, is expected to occur by the fourth quarter 2019. Credicorp will pay approximately COP 254.8 billion (approximately USD 80 million) for the 74.49% controlling interest in Bancompartir, subject to closing adjustments.
Founded in 1985, Bancompartir is one of the top four microfinance banks in Colombia with over 1,800 employees serving 450,000 customers across 104 branches nationwide. Bancompartir provides microfinance and SME financing solutions to micro entrepreneurs and other underserved segments of the population, generating opportunity for progress and quality of life improvement to thousands of families in Colombia. As of December 31, 2018, Bancompartir had a loan portfolio of USD 243 million, total deposits of USD 228 million and a book value of USD 50 million.
This acquisition represents an important step to expand Credicorp’s microfinance business in Latin America and builds upon the successful acquisition and integration of Mibanco in Peru, and the creation of Encumbra in Colombia in 2014. Colombia is one of the countries with the largest potential for microfinance, and Bancompartir provides Credicorp with an attractive geographic footprint covering 27 out of 33 departments. Credicorp seeks to create significant value from this acquisition by leveraging Mibanco’s capabilities, improving commercial productivity and maintaining Bancompartir’s best practices.
Upon completion of the transaction, Maj Invest Financial Inclusion Fund II will continue to hold a 22.45% interest in Bancompartir. Maj Invest Financial Inclusion Fund II is a private equity fund managed by Maj Invest, one of the leading asset managers in Denmark with over USD 10 billion under management. The remaining 3.06% interest in Bancompartir is held by other 36 shareholders, who may decide to sell their shares to Credicorp under the same terms of this transaction up until closing.
Its earnings per share (EPS) expected to touch remained -2.60% for this year while earning per share for the next 5-years is expected to reach at 12.70%. BAP has an operating margin of 62.30% while its profit margin remained 34.50% for the last 12 months. The price moved ahead of 5.39% from the mean of 20 days, 5.33% from mean of 50 days SMA and performed 3.99% from mean of 200 days price. Company’s performance for the week was 3.19%, 7.19% for month and YTD performance remained 7.53%.
Category – Market Movers
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