New York-listed KB Financial Group Inc (KB) successfully acquired 100 per cent ownership of the Kingdom’s largest microlender Prasac Microfinance Institution Plc.

KB paid $322 million for the remaining 30 per cent stake (90 million shares) after it acquired a 70 per cent stake for $603.4 million from Sri Lankan-based non-banking lender LOLC Holdings in April last year.

In a filing to the US Securities and Exchange Commission, KB said it now owns 299,999,999 shares, representing 99.99 per cent of Prasac’s total number of shares issued.

One share, among the 90 million, will be held by Kookmin Bank Cambodia Plc, the subsidiary in the Kingdom of KB’s commercial banking unit Kookmin Bank.

“Although there was an option contract pursuant to which Prasac’s shareholders could sell the remaining shares of Prasac and Kookmin Bank could purchase such shares, Kookmin Bank and the shareholders have agreed that Kookmin Bank would acquire the remaining shares prior to the exercise dates of such options.

“The acquisition, however, is expected to be conducted in accordance with the basic principles set forth in the options contract, such as the method for establishing the purchase price,” KB said.

Prasac received approval from the National Bank of Cambodia (NBC) on January 29, last year to sell the 70 per cent stake to KB.

Prasac president and CEO Sim Senacheert said KB’s investment in Prasac reflects a surge in confidence among foreign investors in Cambodia and the microfinance deposit taking institution (MDI).

“Prasac management and staff would like to warmly welcome our new shareholder, KB Kookmin Bank, to drive Prasac to become more effective and efficient in the expansion of financial inclusion in Cambodia,” said Senacheert.

He said Prasac stands as a market leader with the largest operational network among MDIs, strong financial returns, and a proven record of sustainable growth in its loan portfolio and deposit balances.

Prasac recently reported that it attained $68.47 million in net profit in the January-June period, compared to $37.37 million in the corresponding period last year.

In mid-June, Prasac said it had increased its registered share capital to $300 million from $230 million to achieve a sound financial position to gain the public’s confidence.

On May 5 last year, Prasac listed a corporate bond on the CSX, allocating 1,272,000 shares in the public offering, with a total issue amount of 127.2 billion riel ($31 million).

As of June 30, Prasac’s total assets, gross loan portfolio, deposit balance and shareholder’s equity amounted to $3.83 billion (up 14.23 per cent year-on-year), $3.35 billion, $2.32 billion and $587 million, respectively.