PrimeCredit 'on the market for US$1b'

PrimeCredit is said to be on sale with a valuation of US$500 million (HK$3.9 billion) to US$1 billion, Bloomberg reports. However, the consideration of related sales is still in the initial stage. Besides, the sale will not enter into a formal procedure until the impact on Prime Credit's business of the coronavirus pandemic is assessed.

PrimeCredit has cooperated with HSBC (0005) in preparation of the sale.

PrimeCredit focuses on Hong Kong business, including personal loans and loans for repaying credit card debts and its customer base in Southern China is in Shenzhen.

An international consortium, led by China Travel Financial Investment and formed by Pepper Group and York Capital Management Global Advisors, acquired PrimeCredit from Standard Chartered Bank (Hong Kong) in 2015. The sale was valued at more than US$600 million.

Representative of HSBC and Pepper Group would not comment. Representatives of China Travel Financial Investment, PrimeCredit and York Capital from Hong Kong gave no response. The group is also known as "PrimeCredit brothers" in Hong Kong.