Krungsri (Bank of Ayudhya) announced yesterday that it will purchase 100% of the consumer finance firm SHBank Finance Co (SHB Finance), from Saigon-Hanoi Commercial Joint Stock Bank (SHB).
Under the agreement, SHB will transfer 50% of SHB Finance's charter capital to Krungsri and the remaining 50% after three years when the two parties fulfil certain conditions and meet the relevant regulatory requirements.
"We are very pleased to announce that we have signed agreements with SHB to acquire a 100% stake in SHB Finance, SHB's consumer finance subsidiary, upon closing of the transaction after all regulatory approvals are obtained," said Krungsri president and chief executive Seiichiro Akita.
SHB's local expertise and an extensive network in Vietnam complemented by Krungsri's strength in consumer finance will enhance SHB Finance's business competitiveness.
"Together, we will develop and deliver quality consumer finance products to customers in Vietnam. This milestone also underscores our commitment to Asean expansion strategy following our current medium-term business plan covering 2021-2023," he said.
Krungsri has been expanding outside Thailand through the acquisition of a consumer finance business in Laos, a commercial bank in Cambodia, a consumer finance business in the Philippines, and a representative office in Myanmar.
The acquisition of SHB Finance in Vietnam further strengthens Krungsri's leading position in connecting customers' needs across Asean.
