CVC Capital Partners Asia Fund IV and Equity Partners Limited have agreed to acquire a 50 per cent stake in Ngern Tid Lor Co Ltd (NTL), the microfinance subsidiary of Thailand’s fifth-largest bank Krungsri (Bank of Ayudhya), for an undisclosed amount, according to a statement issued by the bank on Monday.
NTL, acquired by Krungsri in 2009, is a privately-held title loan operator. It expects the latest investment to boost its capabilities to provide affordable credit and insurance solutions to the underbanked and self-employed population in Thailand.
“Our new shareholders bring with them a combination of global expertise and local strength. We hope to benefit from new technologies, operational best practices and business development opportunities to help us better serve Thailand’s long-tail segment,” Piyasak Ukritnukun, Managing Director of NTL, said in a statement.
The bank said NTL operated 750 branches across 74 provinces and had an outstanding loan portfolio of 24.6 billion baht ($744.14 million) at the end of 2017.
Krungsri appointed ING Bank N.V. as the exclusive financial advisor on this transaction, which is subject to satisfactory completion of conditions precedent and regulatory filings.
DEALSTREETASIA reported last month that CVC Capital Partners is seeking up to $5 billion for its fifth Asia fund and expects to hit the first close by the first quarter of 2019. Its predecessor, CVC Asia Fund IV, raised $3.5 billion in May 2014 and is believed to be around 70 per cent deployed.