By Phuong Anh
February 29, 2024 | 10:24 AM GMT+7
The transaction consideration amounts to approximately $870 million and the deal is expected to be completed in the first half of next year.
Home Credit Group has signed a conditional framework agreement to sell 100 per cent of its Vietnam operation to The Siam Commercial Bank Public Company Limited (SCB), according to its latest announcement.
The transaction completion is subject to regulatory approvals in Vietnam and Thailand.
The company added that the final consideration is subject to standard adjustments on completion.
Home Credit Vietnam was launched in 2009 and has gone on to become an established leader in the country’s consumer finance sector, undergoing rapid digitalisation in recent years.
At the time of launch, it represented Home Credit Group’s first opening in South East Asia.
It provides leading consumer financial products in three main categories, including POS loans (motorbikes, home appliances, electronics, furniture etc.), cash loans and revolving loans.
The business holds the second largest market share in the Vietnamese consumer finance sector, which stands at approximately 14 per cent of the total market.
“Home Credit Vietnam has grown rapidly to a market leadership position since the business launched fifteen years ago,” said Radek Pluhar, CEO Home Credit Group. “We are passing the baton to new owners and I am confident the business has an even brighter future.”
SCB is a part of SCBX Public Company Limited that is one of Thailand’s leading financial technology groups. SCB is the fourth largest bank in Thailand, measured by total assets.
