Thailand’s Siam Commercial Bank (SCB) has signed a sale and purchase agreement to acquire 100% of the charter capital of consumer finance firm Home Credit Vietnam for VND20,973 billion ($851 million).
In a Wednesday statement, SCB X Public Company Limited, the parent organization of SCB and a major financial technology business group in Thailand, said the deal is expected to be completed by the first half of 2025, subject to approval from authorities.
Home Credit Vietnam has the second largest market share in Vietnam’s consumer finance market, accounting for approximately 14% as of June 30, 2023, SCB X said.
The consumer finance market in Vietnam has high growth potential in Southeast Asia, driven by strong macroeconomic fundamentals, economic policies that support growth, favorable demographics, and a growing middle class, SCB X added.
Home Credit Vietnam was established by the Czech Republic-based Home Credit Group in 2008. It recorded a profit of VND211 billion ($8.77 million) in the first half of 2023, equal to nearly 18% of the 2022 figure.
As of end June 2023, the firm had equity of over VND6.57 trillion ($272.95 million), a slight increase compared to the beginning of the year. Its liabilities had decreased significantly from VND25.5 trillion to VND18.2 trillion ($756.13 million), while its outstanding bond balance remained unchanged.
“This acquisition marks the beginning of SCBX Group’s expansion into Vietnam,” said Arthid Nanthawithaya, CEO of SCB X.
With about 15 million customers, 14,000 point-of-sale locations, and an experienced management team, “Home Credit Vietnam will serve as an important base for SCBX Group’s presence in Vietnam,” the executive added.