(Reuters) -Investment firm KKR will purchase up to 40 billion euros ($43.71 billion) of buy now, pay later (BNPL) loans originated by PayPal Holdings in Europe, the payments company said on Tuesday.
Under the terms of the agreement, private credit funds and accounts managed by KKR will acquire substantially all of PayPal’s European BNPL loan portfolio.
Shares in the payments firm rose 1.1% in premarket trading on the news of the deal, which is expected to generate about $1.8 billion in gross proceeds and close in the second half the year.
After the deal closes, PayPal said it expects to allocate roughly $1 billion to incremental share repurchases in 2023, contributing to an updated outlook of nearly $5 billion in total share repurchases so far this year.
($1 = 0.9151 euros)
(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)
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