Malaysian financial services group Hwang-DBS Bhd is selling its eponymous bank in Cambodia for $40 million, the company has announced on the Bursa Malaysia.
“Disposal is in line with the objective of the company to exit the commercial banking industry,” the November 8 announcement said, referring to an agreement with Malaysian conglomerate Affin Holding Bernard to sell its investment banking business.
The sale is to Phillip MFIs Pte Ltd, a member of the Singapore-based PhillipCapital Group. PhillipCapital has an existing presence in Cambodia with MFI subsidiary Kredit Microfinance Institution.
Hwang-DBS came to Cambodia in 2009. As of May, it had four branches and 80 staffers.
The bank targets credit for small- and medium-sized business across construction, manufacturing and the hotel industry. The sale is expected to be completed in the first quarter of 2014. Neither Hwang-DBS nor Phillip Group could be reached for comment.