Fri, September 24, 2021

business

Krungsri enters Vietnam through the acquisition of SHB Finance


The acquisition of SHB Finance marks another milestone achievement in Krungsri’s strategic directions of ASEAN expansion, paving the way to aspiration to “Be the Preferred Thai Bank Connecting Customers’ Needs across ASEAN.”

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Krungsri (Bank of Ayudhya PCL) announced that it has reached an agreement with Saigon-Hanoi Commercial Joint Stock Bank (“SHB”), the top 5 largest joint-stock commercial banks in Vietnam, to purchase and receive the transfer of 100% of charter capital in SHBank Finance Company Limited (“SHB Finance”), the top 10 consumer finance company in Vietnam. Under this agreement, SHB will transfer 50% of SHB Finance's charter capital to Krungsri and the remaining 50% after 3 years when the two parties fulfil the certain conditions and meet the relevant regulatory requirements. The acquisition of SHB Finance marks another milestone achievement in Krungsri’s strategic directions of ASEAN expansion, paving the way to aspiration to “Be the Preferred Thai Bank Connecting Customers’ Needs across ASEAN.”

Krungsri President & CEO Mr. Seiichiro Akita said, “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. 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 .”

Currently, Krungsri has secured its foothold in the ASEAN Market including a branch and a consumer finance business in Lao PDR, 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.

Chairman of the Board of Directors of SHB Mr. Do Quang Hien said, “The consumer finance market in Vietnam has great potential and room for growth. SHB Finance is a “beautiful girl” with healthy financial health. After a period of selection and negotiation, we have found a suitable partner to contribute to bringing synergistic value in many aspects such as management experience, technology, improve financial capacity, network expansion, and new product development, international cooperation, enhancement of SHB’s reputation and brandname in the region and in the world.”

Both Krungsri and SHB will work together to promote the growth of Vietnam's consumer finance market, bringing greater value to customers, shareholders, and partners.

Published : August 26, 2021