Thailand’s Bank of Ayudhya to acquire SHB Finance in Vietnam for $156m

Krungsri (Bank of Ayundhya) president and CEO Seiichiro Akita. Source: Krungsri website

Thailand’s Bank of Ayudhya Pcl (BAY) said on Wednesday that it will acquire SHB Finance in Vietnam from Saigon-Hanoi Commercial Joint Stock Bank for 5.1 billion baht ($155.77 million).

“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,” Bank of Ayudhya President Seiichiro Akita said in a statement.

Japan’s Mitsubishi UFJ Financial Group holds a 76.9% stake in Bank of Ayudhya, Thailand’s fifth largest bank by assets.

“The acquisition will enable the bank to capture growth outside of Thailand,” BAY said, adding that SHB Finance has more than 200,000 borrowers.

Bank of Ayudhya is the latest lender to expand outside of Thailand for growth opportunities. In 2019, top-ranked Bangkok Bank Pcl acquired Indonesia’s PT Bank Permata for about $2.7 billion.

Earlier this year, second-ranked Kasikornbank Pcl opened its first branch in Vietnam.

The transaction is subject to regulatory approval and will have two phases with SHB transferring 50% of SHB Finance to Bank of Ayudhya in the first phase. The remaining stake will be transferred in the next three years, BAY said in a bourse filing.

The investment will use the bank’s internal funds.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.