Krungsri (Bank of Ayudhya PCL) announced today that it has reached an agreement with Saigon-Hanoi Commercial Joint Stock Bank (“SHB”). The deal is to purchase and receive the transfer of 100% of charter capital in SHBank Finance Company Limited (“SHB Finance”). SHB is one of the top 5 largest joint-stock commercial banks in Vietnam. SHB Finance is also one of the top 10 consumer finance companies in Vietnam. Under this agreement, SHB will transfer 50% of SHB Finance’s charter capital to Krungsri. SHB will transfer the remaining 50% after three years when the two parties fulfil 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. This action paves the way for its 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 Finance is SHB’s consumer finance subsidiary. The acquisition will be finalised upon closing the transaction after all regulatory approvals are obtained. SHB’s local expertise and extensive network in Vietnam complements Krungsri. In turn, 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.”
Vietnam is not the first Krungsri overseas market.
Currently, Krungsri’s expansion includes the following: Firstly, a branch and a consumer finance business in Lao PDR. Secondly, a commercial bank in Cambodia. Thirdly, a consumer finance business in the Philippines. And recently, 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 SHBMr. 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.”
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.