SHB sells consumer finance unit to Thai lender
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The Saigon-Hanoi Commercial Joint Stock Bank will sell a 50 percent stake in its consumer finance division, SHB Finance, to Thailand’s Bank of Ayudhya.
Vietnam’s fifth-largest bank said in a statement it would sell the remaining 50 percent to Bank of Ayudhya after three years.
Bank of Ayudhya said in a stock market filing that the deal is worth VND3.59 trillion ($157.75 million), adding: “The acquisition will enable the bank to capture growth outside of Thailand.”
Japan’s Mitsubishi UFJ Financial Group holds a 76.9 percent stake in the lender, Thailand’s fifth-largest by assets.
After more than three years since inception, SHB Finance has a presence in 46 provinces and cities and almost 300,000 borrowers.
Another private lender, VPBank, sold a 49 percent stake in its consumer finance unit, FE Credit, in April to Japan’s Sumitomo Mitsui Finance Group for $1.4 billion.
Other Vietnamese lenders like VietinBank and MSB are also looking to sell their consumer finance operations.
Questions & Answers
Q.Which bank is buying the stake in SHB Finance?
Which bank is buying the stake in SHB Finance?
Thailand’s Bank of Ayudhya will acquire the stake in SHB Finance. It will initially buy 50 percent, with the remaining 50 percent purchased after three years.
Q.What is the value of the deal for SHB Finance?
What is the value of the deal for SHB Finance?
The deal for the entire stake is valued at VND3.59 trillion. This is equivalent to $157.75 million, as stated by Bank of Ayudhya in a stock market filing.
Q.Who owns a significant stake in Bank of Ayudhya?
Who owns a significant stake in Bank of Ayudhya?
Japan’s Mitsubishi UFJ Financial Group holds a 76.9 percent stake in Bank of Ayudhya. This makes the Japanese group a major shareholder in the acquiring lender.
Q.How does this sale compare to other recent consumer finance deals in Vietnam?
How does this sale compare to other recent consumer finance deals in Vietnam?
Another private lender, VPBank, sold a 49 percent stake in its consumer finance unit, FE Credit, in April. That deal was worth $1.4 billion and involved Japan’s Sumitomo Mitsui Finance Group.
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