Japanese bank is impatient, wants to "close early" the deal to buy SHBFinance

(NLDO) – A member bank of the Japanese group has just proposed to buy back 50% of the remaining charter capital of SHBFinance finance company ahead of schedule.

On November 5, Saigon - Hanoi Bank ( SHB ) announced a resolution approving the sale/transfer of capital at Saigon - Hanoi Bank Finance Company Limited (SHBFinance) to a partner.

The resolution was passed after Ayudhya Public Limited Bank (Krungsri) - a member of MUFG Group (Japan) proposed to SHB to buy 50% of the remaining charter capital of SHBFinance ahead of schedule.

Previously, in August 2021, SHB and Krungsri signed a contract to transfer 100% of the finance company's charter capital in two phases.

SHB has signed a contract to transfer 100% of the charter capital of SHBFinance Finance Company to Krungsri Bank.

In this second phase, SHB will transfer the remaining 50% of charter capital at SHBFinance. This deal is expected to bring a significant capital surplus to SHB.

Recently, Vietnam's consumer lending market has witnessed many mergers and acquisitions between foreign corporations and domestic companies.

Most recently, Home Credit Group signed a conditional framework agreement to transfer 100% of its capital contribution in Home Credit Vietnam Finance Company Limited to The Siam Commercial Bank Public Company Limited (SCB), a member of SCBX, Thailand. According to the announcement, this deal is worth approximately 800 million euros (approximately 22,000 billion VND). The transfer is expected to be completed in the first half of 2025.

SCB is the oldest bank in Thailand, ranking 4th in total assets in the country. SCBX - SCB's parent company - is also one of the leading financial technology groups in Thailand.

At the end of 2023, Southeast Asia Commercial Joint Stock Bank ( SeABank ) also signed a contract to sell all of its capital contributions at Post and Telecommunication Finance Company Limited (PTF) to AEON Financial Service Co., Ltd. - a member of AEON Group - Japan's largest retail group. The deal was announced to be worth VND4,300 billion.

Regarding business results, in the first 9 months of 2024, SHB's accumulated pre-tax profit reached VND 9,048 billion, achieving 80% of the yearly plan.

Source: https://nld.com.vn/ngan-hang-cua-nhat-sot-ruot-muon-chot-som-thuong-vu-mua-shbfinance-196241105125300282.htm