August 3, 2018 / 1:35 PM / 13 days ago

Mediobanca to buy stake in Indonesia's BFI Finance

(Reuters) - Italian investment bank Mediobanca (MDBI.MI) has reached an agreement to buy a 19.9 percent stake in Indonesia’s consumer credit operator BFI Finance (BFIN.JK) through its wholly-owned unit Compass Banca, the bank said on Friday.

The lender said the deal would be immediately accretive, boosting group net revenues by 1 percent and net profit by around 2 percent.

It did not disclose the price but said it would have an impact on its capital ratios of 30 basis points.

Mediobanca, the biggest shareholder in Italian insurer Generali (GASI.MI), has sold a series of stakes in recent years to focus on traditional banking.

It has said it plans to sell down its stake in Generali and use the proceeds to boost its wealth management business.

“The Indonesian financial sector ... shows appealing margins, with risks under control in a constantly improving institutional scenario,” the bank said in a statement.

The deal is expected to be finalized by the end of year.

Reporting by Silvia Recchimuzzi in Gdynia; Editing by Jan Harvey

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