Indonesian fintech company Cicil is set to acquire a 30% stake in listed financing company PT Pool Advista Finance Tbk, giving the P2P lending player a foothold in the multifinance sector as it broadens its financing business beyond its traditional platform.
According to a transaction between the parties, signed on Oct. 2, Cicil will pick a 30% stake in Pool Advista Finance, while POOL’s holding will fall to 46.34% from 76.34%. POOL will remain the controlling shareholder, and Pool Advista Finance will continue to be consolidated as its subsidiary.
The transaction value has yet to be determined and will be based on a valuation by an independent public appraisal firm registered with the Financial Services Authority, or OJK. Completion is subject to the issuance of the appraisal report, compliance with OJK and Indonesia Stock Exchange requirements, and the signing of payment documents.
The deal comes as Cicil shifts further into productive financing. Founded in 2016 as an education financing platform, the company began focusing on supply-chain financing and ecosystem financing in 2023.
The investment will give Cicil a foothold in the multifinance business through Pool Advista Finance, one of several financial-services businesses under the Pool Advista group. POOL’s businesses include Pool Advista Sekuritas, Pool Advista Aset Manajemen, Pool Advista Finance, and Asuransi Jiwa Advista.
Cicil has not disclosed the specific products or business strategy it plans to pursue through the stake.
The fintech has received backing from several venture firms, including East Ventures, Vertex Ventures SEA & India, K3 Ventures and Insignia Ventures Partners, among others, with $5.52 million in equity funding, according to DealStreetAsia DATA VANTAGE.
At the company’s 10th anniversary event, President Director Yohanes Edward Widjonarko said Cicil would focus on diversifying its funding sources and products, alongside strengthening risk management and partnerships with lenders, borrowers, ecosystem partners and regulators.
POOL said it and Cicil have no affiliation or conflict of interest in relation to the transaction. Following completion, POOL will remain the largest shareholder and controller of Pool Advista Finance, so the transaction will not trigger a mandatory tender offer.
As of September, POOL held 2.558 billion shares, or 76.341%, in Pool Advista Finance, while state-owned insurer Asabri held 257.1 million shares, or 7.673%.
POOL said the signing of the agreement would not affect its operations, legal position, financial condition or business continuity. Once completed, the company expects the proceeds from the sale to strengthen its liquidity, while Pool Advista Finance will remain a consolidated subsidiary.
