Krungsri completes full takeover of SFinance in Vietnam

Bank of Ayudhya Public Company Limited, or Krungsri (BAY), has completed its acquisition of SFinance Consumer Credit Finance Company Limited in Vietnam, taking its ownership to 100% as it expands its consumer finance business in the country.

Krungsri President and Chief Executive Officer Kenichi Yamato informed the Stock Exchange of Thailand that the bank completed the purchase and transfer of the remaining 50% of SFinance’s charter capital on October 15.

The transaction makes SFinance a wholly owned subsidiary of Krungsri.

SFinance, formerly known as SHBank Finance Company Limited, provides consumer finance services in Vietnam.

Two-stage acquisition completed

Krungsri shareholders approved the acquisition of 100% of the company’s charter capital from Saigon-Hanoi Commercial Joint Stock Bank (SHB) at an extraordinary general meeting on October 29, 2021.

The deal was structured in two stages.

Krungsri completed the transfer of the first 50% in May 2023, following an acquisition agreement reached with SHB in August 2021.

The bank has now completed the purchase of the remaining 50% after all required conditions were fulfilled.

The second-stage transaction received approvals from relevant regulators, including the State Bank of Vietnam and Japan’s Financial Services Agency.

Vietnam strengthens Krungsri’s ASEAN expansion

Krungsri originally described the acquisition as part of its strategy to expand its business across ASEAN and strengthen its position in regional consumer finance.

When the deal was announced in 2021, the bank identified Vietnam’s growing population and expanding consumer finance market as factors supporting its investment.

With the final transfer completed, Krungsri now owns all of SFinance’s charter capital, giving it full ownership of the Vietnamese consumer finance business and a larger platform for expanding its retail financial services in the market.