30.01.2016, 02:24
Acquisition of Financial Institution in Cambodia by Krungsri
OREANDA-NEWS. Bank of Ayudhya Public Company Limited (Krungsri), a consolidated subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), which is wholly owned by Mitsubishi UFJ Financial Group, Inc. (MUFG), has reached an agreement with all shareholders of Hattha Kaksekar Limited (HKL), a financial institution in Cambodia, to acquire all of the outstanding shares (with voting rights) of HKL, subject to the approval of Krungsri's shareholders' meeting and relevant authorities.
Objectives and Strategic Rationale of the Transaction Cambodia has achieved an economic growth rate of more than 7%, driven by its stable security situation, relatively inexpensive and abundant labor, and the geographical advantage of being located between the economic centers of Greater Mekong, Thailand and Vietnam. Cambodia is expected to maintain high economic growth led by increasing demand for infrastructure following the completion of the Southern Economic Corridor (an arterial road connecting Ho Chi Minh City-Phnom Penh with Bangkok) in April 2015 and regional economic revitalization through the launch of the ASEAN Economic Community (AEC).
MUFG and BTMU have focused on expanding their business platform in ASEAN and the Mekong region through investments in VietinBank, one of the top state-owned commercial banks in Vietnam, the acquisition of Krungsri, one of the leading commercial banks in Thailand, a business alliance with Co-operative Bank Ltd., a leading private bank in Myanmar, and the opening of a branch in Yangon, Myanmar, as the first foreign bank to open a branch in the country since its transition to civilian rule.
In addition, MUFG and BTMU have continued to upgrade financial services to customers, such as by concluding capital and business alliances with Security Bank Corporation, a leading commercial bank in the Philippines. Since February 2012, when BTMU established the Phnom Penh Representative Office, the first in Cambodia by a Japanese bank, BTMU has been analyzing Cambodia's economic information and providing an environment conducive to investment. This acquisition will enable MUFG and BTMU to tap into the growth of the Cambodian market by leveraging the knowhow of Ngern Tid Lor Co., Ltd.(headquarters: Bangkok), a subsidiary of Krungsri engaging in microfinance in Thailand, in the promotion and development of microfinance businesses.
Objectives and Strategic Rationale of the Transaction Cambodia has achieved an economic growth rate of more than 7%, driven by its stable security situation, relatively inexpensive and abundant labor, and the geographical advantage of being located between the economic centers of Greater Mekong, Thailand and Vietnam. Cambodia is expected to maintain high economic growth led by increasing demand for infrastructure following the completion of the Southern Economic Corridor (an arterial road connecting Ho Chi Minh City-Phnom Penh with Bangkok) in April 2015 and regional economic revitalization through the launch of the ASEAN Economic Community (AEC).
MUFG and BTMU have focused on expanding their business platform in ASEAN and the Mekong region through investments in VietinBank, one of the top state-owned commercial banks in Vietnam, the acquisition of Krungsri, one of the leading commercial banks in Thailand, a business alliance with Co-operative Bank Ltd., a leading private bank in Myanmar, and the opening of a branch in Yangon, Myanmar, as the first foreign bank to open a branch in the country since its transition to civilian rule.
In addition, MUFG and BTMU have continued to upgrade financial services to customers, such as by concluding capital and business alliances with Security Bank Corporation, a leading commercial bank in the Philippines. Since February 2012, when BTMU established the Phnom Penh Representative Office, the first in Cambodia by a Japanese bank, BTMU has been analyzing Cambodia's economic information and providing an environment conducive to investment. This acquisition will enable MUFG and BTMU to tap into the growth of the Cambodian market by leveraging the knowhow of Ngern Tid Lor Co., Ltd.(headquarters: Bangkok), a subsidiary of Krungsri engaging in microfinance in Thailand, in the promotion and development of microfinance businesses.
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