Thailand’s Krungsri aims to wholly acquire Hanoi-based SHBFinance soon

Bangkok-domiciled Krungsri, officially known as Bank of Ayudhya Public Company Limited, has offered to acquire the remaining 50% stake in SHBFinance from private lender SHB before their initially agreed timeline.

In a Tuesday statement, Saigon-Hanoi Bank (SHB) announced its decision to sell the 50% stake in SHBank Finance Company Limited (SHBFinance) to Krungsri earlier than the schedule approved in December 2021.

In August 2021, SHB and Krungsri signed an agreement on transferring 100% of SHBFinance in two phases for VND3.59 trillion ($141.76 million). The first phase was completed in May 2023 when the Thai partner took control of a 50% stake. The remainder will be transferred after three years, or in 2026.

According to the SHB statement, the bank will accept the resignations of the bank’s representatives in SHBFinance and other officials and personnel appointed by SHB in the finance company pursuant to the closing of the transaction.

In July 2023, Do Quang Vinh, the elder son of SHB’s chairman Do Quang Hien, stepped down as standing vice chairman and board member of SHBFinance.

Established in 1945, Krungsri is currently the fifth-largest bank in Thailand in terms of loans and deposits. Japan’s MUFG Bank now owns 76.88% of the Thai bank.

SHB, listed on the Ho Chi Minh Stock Exchange as SHB, earned a consolidated net profit of VND7,234 billion ($285.66 million) in the first nine months of this year, up 5% year-on-year.

Its total assets stood at VND688.39 trillion ($27.18 billion) as of September 30, up 9.2% from end-2023.