South Korean listed KB Financial Group (KRX: 105560) has fully acquired Cambodia’s largest microfinance institution PRASAC Microfinance paying $322 million for the remaining 30% of the company. The group had already purchased 70% of the company for $603.4 million last year from Sri Lankan-based non-banking lender LOLC Holdings.
According to a filing to Securities and Exchange Commission, KB Financial now holds 299,999,999 shares, representing 99.99% of PRASAC’s total number of shares issued. (Kookmin Bank has designated Kookmin Bank Cambodia PLC., one of its first-tier subsidiaries, to acquire the one remaining share of PRASAC).
The filing stated: 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.
KB Financial Group’s 2021 first half net profit was up 44.6% year-on-year earning $2.1 billion, the company stated this was driven by solid growth from core earnings, there were stronger earnings stability supported by non-organic growth from Mergers & Acquisitions.
KB Financial Group shares are trading 19.67% up year to date at KRW 50,800.
PRRASAC posted $68.47 million in half-yearly net profit equivalent to 82.55% compared to the same period last year. The rebound occurred after concerns over a $800 million “technical default” last year.
The company stated in the report the main reason of increasing profit was interest income and fees and commission income which grew respectively by $19.66 million and $1.63 million due to growth of loan portfolios in the second quarter this year.