Krungsri (Bank of Ayudhya) said in a statement yesterday that it had reached agreement with “sellers” to acquire 100 per cent of Hattha Kaksekar Ltd (HKL), the fourth-largest microfinance institution in Cambodia.
The transaction is subject to regulatory approvals and fulfilment of certain conditions, including the approval of a Krungsri shareholders’ meeting.
The bank did not name the party or parties selling the Cambodian business.
The acquisition of HKL is a milestone achievement in Krungsri’s strategy to expand outside Thailand and capture growth opportunities in CLMV (Cambodia, Laos, Myanmar and Vietnam) by leveraging the bank’s strength in consumer banking and microfinance, it said in the statement.
“HKL is one of the leading microfinance institutions in Cambodia,” Krungsri president and chief executive officer Noriaki Goto said. “The share acquisition in HKL will enable the bank to capture growth opportunities arising from the rapid development in the CLMV countries.
“The acquisition also offers a meaningful footprint for Krungsri in Cambodia to enhance our CLMV strategy, particularly values from business opportunities pertaining to both a growing domestic market as well as cross-border connectivity in the future.”
He added that HKL’s strength lay in its established platform with substantial scale and an experienced management team, as well as its extensive physical presence, robust operating and governance platforms.
“Krungsri’s positive contributions to Cambodia’s financial system include leveraging and exporting our know-how and expertise in microfinance businesses, and SME [small and medium-sized enterprise] loans as well as deposit-taking activities from the general public,” Goto said.
HKL president and CEO Hout Iengtong said: “The microfinance sector in Cambodia has undergone comprehensive development in recent years. HKL, in particular, has been contributing positively and prudently to both robust growth and development in the Cambodian financial system.
“Enhanced by the expertise of Krungsri in retail banking and microfinance management, HKL will be further developed to become a much larger microfinance service provider with an even more robust operating platform, assisting customers to succeed in their businesses with suitable financial products and services.”