Saigon-Hanoi Joint Stock Commercial Bank (SHB) has just announced the transfer of 50 per cent of its capital and consumer finance arm the to Bank of Ayudhya (Krungsri) of Thailand.
|Krungsri will acquire SHB Finance |
SHB has just announced that it has entered a strategic agreement to sell its consumer finance arm, SHB Finance, to Ayudhya Bank (Krungsri) of Thailand – a member of Mitsubishi UFJ Financial Group (MUFG) from Japan.
Accordingly, SHB will transfer 50 per cent of SHB Finance's charter capital to Krungsri. The remaining 50 per cent ownership will be transferred to the Thai bank after three years.
The size of the deal has been rumoured to be around $156 million.
Founded in 1945, Krungsri is currently the fifth-largest bank in Thailand in terms of loans and deposits. The bank provides a full range of banking services to both commercial and individual customers.
The MUFG is the largest financial group in Japan and holds nearly 77 per cent of Krungsri’s stake. The MUFG is also a strategic shareholder with approximately 20 per cent of Vietnam’s state-owned lender VietinBank.
SHB and Krungsri are recognised as financially sound banks with extensive networks of branches and transaction offices in Vietnam, Thailand, and other Southeast Asian countries.
Krungsri is expected to bring additional capacity and international know-how to help SHB Finance to broaden its horizon, diversify its products, and accelerate digital transformation.
Besides selling its consumer finance company, SHB is also divesting in two overseas subsidiaries, SHB Laos and SHB Cambodia.