Saigon-Hanoi Bank (SHB) has completed the 50% stake sale of SHB Finance, its consumer finance arm, to Thailand's Krungsri Bank, the Vietnamese creditor announced Tuesday.
SHB added that the two sides would continue cooperation to complete the sale of the remaining 50% in the next three years.
Do Quang Vinh, vice board chairman cum deputy CEO of SHB, stated that the divestment would bring a significant capital surplus for SHB shareholders and foster the bank’s financial capacity and operation, thereby promoting business activities in key segments, especially enabling massive investment in digital transformation.
“This deal also helps SHB to strengthen its capital buffer - one of the bases to accelerate Basel III implementation and the application of international financial reporting standards (IFRS) in 2023,” Vinh said.
Olena Khlon, deputy CEO of SHB Finance, commented that “the enormously potential consumer finance market in Vietnam, well regulated by the government, presents itself as an ideal destination for foreign investors. The companionship of Krungsri, a big financial institution in the region, will speed up our goal of becoming one of the leading financial companies and a companion to build a better life for every customer segment.”
After nearly five years of operation, SHB Finance ranks among the top 10 largest consumer finance companies in Vietnam with a business network across 51 provinces and more than 7,000 employees, according to SHB.
In August 2021, SHB and Krungsri reached an agreement on the latter’s acquisition of SHB Finance with a total value of VND3.59 trillion ($153.12 million), marking the Thai lender’s entrance into Vietnam as part of its ASEAN expansion.
Per the announcement of the Thai lender, also a strategic member of Japan's financial giant MUFG Group, the transfer includes two phases of VND1,573 billion ($67.09 million) for 50% stake and then VND2,017 billion ($86.03 million) for the remaining 50% stake.