SUM MANET
Thailand’s Bank of Ayudhya PLC., known more commonly as Krungsri announced last week that it was entering the Cambodian microfinance market with the acquisition of Hatta Kaksekar Limited (HKL).
In a press release, Krungsri ‒ itself part of the Japanese-based Mitsubishi UFJ since 2013 ‒ described the move as an “accelerated step forward to becoming an Asean powerhouse.”
“We are pleased to announce that after we had obtained all regulatory approvals, we were able to successfully conclude the acquisition of HKL,” the release quoted Krungsri CEO Noriaki Goto.
“We strongly believe that this development is of mutual benefit to the valued customers of both HKL and Krungsri. HKL’s local expertise and an extensive network in Cambodia complemented by Krungsri’s strength in consumer finance will enable both parties to capture exciting opportunities emerging from one of Asean’s fastest-growing economies.”
“Of particular importance, Krungsri’s expertise in consumer banking and microfinance platform will be shared to strengthen HKL’s market leading position through enhanced capability and resources.”
The $150 million deal to buy the 100 percent stake in HKL was first announced in a press release from Krungsri in January, pending “satisfactory regulatory approvals and fulfillment of certain conditions.”
HLK CEO Hout Ieng said at the time that the deal would change nothing cosmetic, with the name and basic structure remaining the same. In addition to providing micro-loans, he said that the aim was for HLK to become a commercial bank.
“We will continue working as we do, which means that we will continue to expand our micro-finance service and offer bigger loans to customers.”
Last week’s press release describes HKL as the fourth largest microfinance institution in Cambodia, with total assets of $517 million as of June.
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