The value of the deal that SHB transfers SHB Finance to Krungsri is up to nearly VND 3,600 billion?

2 min read

Saigon – Hanoi Commercial Joint Stock Bank (SHB) recently announced the transfer of SHB Finance to Krungsri – a member of Mitsubishi UFJ Financial Group (MUFG).

At the end of 2020, the charter capital of SHB Finance was announced to be VND 1,000 billion, 100% owned by SHB. In April 2020, the Board of Directors of SHB Finance approved a resolution to submit to the Board of Directors of SHB for approval at the General Meeting of Shareholders on the divestment of capital at SHB Finance for a large foreign strategic partner.

SHB President – ​​elected Hien said at the time of June 2020 that there were many partners who wanted to buy SHB Finance capital, but SHB was still considering and choosing the most suitable investor with the development strategy.

Thus, the transfer of SHB Finance after more than a year of launch has found a strategic investor who is a “financial giant” from Thailand – Krungsri.

According to information from Krungsri, the value of this transfer can be up to 3,590.3 billion VND (equivalent to 5,184.4 billion Thai baht).

The payment will be divided into 2 installments. Krungsri will pay VND 1,573.4 billion and receive the transfer of 50% of SHB Finance’s charter capital in the first phase.

In the second phase, Krungsri will pay the remaining amount of VND 2,016.9 billion after 3 years at the end of the first phase, and at the same time receive the transfer of 50% of the remaining capital of SHB Finance.

According to Krungsri, the purpose of transferring SHB Finance is to develop its business activities outside of Thailand, increase its competitive advantage and expand its customer base in Southeast Asia. It is known that Krungsri currently has 23 subsidiaries operating in the fields of finance, real estate, services, and information technology.

Krungsri, formerly known as Ayudya Bank Ltd., was established in 1945. The bank’s shares were listed on the Stock Exchange of Thailand in 1977.

In 2013, MUFG Bank – a unit of MUFG Group replaced GE Capital as a strategic shareholder of Krungsri. Up to now, MUFG Group has held 76.88% of Krungsri’s capital, this group is also known as a strategic shareholder of VietinBank.

Krungsri is the 5th largest bank in Thailand in terms of total assets, outstanding loans and deposits. By the end of the first quarter of 2021, Krungsri’s total assets reached more than 2,695 billion Thai baht (more than 1.87 million billion VND).

Krungsri’s net profit in 2020 reached 23.04 billion Thai baht (equivalent to 16,024 billion VND), the first 6 months of 2021 reached more than 14.54 billion Thai baht (equivalent to 10,112 billion VND).

Source: vietnamfinance.vn – Translated by fintel.vn