South Korea’s KB Kookmin Bank has said its board has agreed to acquire 70 percent stake in Cambodia’s Prasac Microfinance Institution for US$ 603.4 million from Sri Lanka’s LOLC Holdings, subject to regulatory approval.
Prasac Microfinance is the No. 1 microfinance deposit-taking institution, taking up over 40 percent of market share in Cambodia with 177 branches.
KB Kookmin will close the deal within three months, following a due diligence and approval from financial authorities in Korea and Cambodia, a news report by Korean Herald said.
LOLC has officially maintained that no finality has been reached with regard to the execution of any such transaction.
But a detailed statement from LOLC on the deal is expected by mid this week.
The deal is expected to allow KB Kookmin to consolidate its consumer banking network in the Southeast Asian nation. Operating six bank branches, KB Kookmin earned preapproval in Cambodia for the acquisition in May.
KB Kookmin said it plans to buy the remaining 30 percent stake in the institution at least two years after the transaction.
Prasac Microfinance logged a 91.5 billion won (US $78.7 million) net profit in 2018, up 36.7 percent year-on-year, according to KB Financial Group’s regulatory filing.