Logo of Phnom Penh Post newspaper Phnom Penh Post - Malaysia investment firm eyes opportunity in Cambodian finance

Malaysia investment firm eyes opportunity in Cambodian finance

Malaysia investment firm eyes opportunity in Cambodian finance

Malaysia-listed Gunung Capital Bhd, an investment holding company involved primarily in chartering out land-based transportation assets, is looking to acquire a 20 per cent stake in a Cambodian financial institution.

Malaysian media outlet Bernama reported on Wednesday that the management of the company has been invited by promoters of a yet-to-be-issued, fully fledged commercial banking licence in Cambodia to evaluate a proposal to participate in.

It said the company management is currently in advanced discussions regarding the allowable equity participation in financial institutions. The parties are also in advanced discussions on other qualitative and quantitative requirements, such as governance issues, imposed by the relevant authorities in the Kingdom on foreign equity participation.

“At this stage of evaluation and discussions, the company cannot confirm the amount of the investment value involved,” Bernama reported the company as saying in a filing with the Malaysian stock exchange, Bursa Malaysia.

“Upon completion of the evaluation of the proposal, and [that] the prospective yield of such an equity investment is strongly beneficial to the company, then the management will seek a meaningful equity participation of at least a 20 per cent equity stake to maximise on this investment opportunity,” it said.

The Post could not reach National Bank of Cambodia (NBC) director-general Chea Serey for comment on Thursday.

Bernama also reported that Gunung is potentially looking to unlock the value of the bank through a listing on the Cambodia Securities Exchange. Gunung said it was premature to conclude that a listing exercise in Cambodia is the company’s only option to unlock the value of an equity investment.

“This option is obviously a long-term strategy given the current infancy stage of the commercial bank proposal and the un-concluded evaluation of the proposal, and would require the necessary approvals from relevant authorities in Cambodia to list on the stock exchange,” Gunung was quoted as saying.

As of the end of last year, the Kingdom has 46 commercial banks, 15 specialised banks and 82 microfinance institutions (MFIs). There are also 248 rural credit operators, 15 leasing companies and 20 payment service providers, said the NBC Annual Report 2019.

Banks’ outstanding loan portfolio reached $24.5 billion last year while deposits stood at $25.5 billion. Among MFIs, loans reached $7.2 billion and deposits $3.9 billion, it said.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • 11th Chaktomuk Short Film Festival draws to close

    Cambodia's 11th Chaktomuk Short Film Festival wrapped up successfully on November 28 after a four-day run, with the film “Voice of the Night” awarded top prize for 2022. Sum Sithen, the organiser of the short film festival, told The Post that the number of attendees to the