Logo of Phnom Penh Post newspaper Phnom Penh Post - Thai bank’s buyout of local MFI finalised

Thai bank’s buyout of local MFI finalised

A man directs traffic outside a branch of Hattha Kaksekar Limited on Phnom Penh's Street 271 earlier this year.
A man directs traffic outside a branch of Hattha Kaksekar Limited on Phnom Penh's Street 271 earlier this year. Pha Lina

Thai bank’s buyout of local MFI finalised

Thailand's Bank of Ayudhya has officially reached an agreement to acquire the full shareholding of Cambodian microlender Hattha Kaksekar Ltd (HKL), a banking executive said yesterday, while declining to disclose the value of the landmark deal.

Hout Ieng Tong, president and chief executive of HKL, said that the technical details of the acquisition have been worked out by representatives of the two financial institutions and the National Bank of Cambodia (NBC) sanctioned the transaction last month.

“We got approval from NBC and we also received approval from the Ministry of Commerce,” he said. “Thus, it means everything is completed.”

In a statement released in January, Bank of Ayudhya, also known as Krungsri Bank, announced its intention to acquire HKL in a deal reported to be valued at upwards of $140 million.

Ieng Tong insisted yesterday that the figure revealed in the past was incorrect. However, he declined to put a value on the deal.

Representatives from NBC and the Bank of Ayudhya could be reached for confirmation yesterday.

Bank of Ayudhya is Thailand’s fifth-largest commercial lender with nearly $50 billion in assets.

HKL is Cambodia’s fourth-largest microfinance institution with 150 branches and $446 million in assets as of end-2015. The lender had a $363.5 million loan portfolio, with $236.4 million in deposits last year, according to its annual report.

MOST VIEWED

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Hun Sen: Stay where you are, or else

    Prime Minister Hun Sen warned that the two-week lockdown of Phnom Penh and adjacent Kandal provincial town Takmao could be extended if people are not cooperative by staying home. “Now let me make this clear: stay in your home, village, and district and remain where

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Ministry names types of business permitted amid lockdown

    The Ministry of Labour and Vocational Training singled out 11 types of business that are permitted to operate during the lockdown of Phnom Penh and Takmao town, which run through April 28. Those include (1) food-processing enterprises and slaughterhouses; (2) providers of public services such as firefighting, utility and

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting