Cambodia Investment Review

Taiwanese Bank SinoPac Finalizes $550M Deal to Acquire 80% Stake in Cambodia’s Amret

Taiwanese Bank SinoPac Finalizes $550M Deal to Acquire 80% Stake in Cambodia’s Amret

Cambodia Investment Review

Bank SinoPac, a prominent Taiwanese commercial bank, has finalized the acquisition of an 80% stake in Amret, one of Cambodia’s largest microfinance deposit-taking institutions. The transaction, valued at approximately $550 million, represents a significant milestone for both institutions and reflects Bank SinoPac’s strategy to expand its presence in Southeast Asia. Full ownership of Amret is expected to transfer to Bank SinoPac within two years.

The deal, which followed a lengthy sales process and was first announced to shareholders in May 2024, has secured regulatory approvals in both Cambodia and Taiwan. It also marks the exit of former majority shareholder Advans, while development financial institutions FMO and IFC retain a reduced 10% stake each to facilitate a smooth transition. Bank SinoPac will then assume 100 per cent ownership of Amret.

Read More: Taiwan-based SinoPac Bank To Fully Acquire Amret Microfinance For $543 Million

Partnership to Enhance Financial Inclusion and ESG Focus

Bank SinoPac’s entry as Amret’s new majority owner builds on a long-standing partnership, as the bank has been a lender to Amret since 2017. The acquisition aligns with Bank SinoPac’s focus on sustainability, inclusive finance, and digital innovation. Amret Chief Executive Officer, Mr. Dinn Dos, emphasized the synergy between the two organizations, noting the shared commitment to sustainable development.

“We are not only expanding our footprint in Southeast Asia but also reinforcing our commitment to helping communities thrive and creating long-term opportunities for prosperity and well-being,” Bank SinoPac stated. The partnership includes collaboration with FMO and IFC, two institutions recognized for advancing responsible investment and financial inclusion.

Amret is one of the largest microfinance provider in Cambodia reaching more than 100,000 borrowers.

Amret boasts a network of 150 branches, over 630,000 clients, and $2 billion in assets. The institution has played a crucial role in promoting financial inclusion in Cambodia, serving a diverse customer base that includes low-income farmers and SMEs. In 2023, Amret reported a profit of $27.5 million, a decline from $50 million in 2022, supported by 4,700 employees.

A Major Step for Cambodia’s Financial Sector

Outgoing Chairman of Amret’s Board of Directors, Mr. Claude Falgon, highlighted the rigorous process of selecting a suitable new owner. “Bank SinoPac has demonstrated commitments and experience in [sustainability and ESG], and together with its parent company SinoPac Holdings, has been consistently recognized by leading global assessors of sustainable, responsible, and ethical businesses.”

This acquisition underscores the growing appeal of Cambodia’s financial sector, which benefits from a young population and increasing demand for financial services. The IMF projects Cambodia’s economy to grow at a compound annual rate of 6.3% from 2023 to 2028, making it a key market for expansion.

The transaction, valued at 1.8 times Amret’s book value of $302 million as of 2023, was facilitated by Cambodian firms including Mekong Strategic Capital and DFDL Cambodia and others. As Bank SinoPac integrates Amret into its Southeast Asian network, the acquisition is expected to drive further innovation and development in Cambodia’s evolving financial landscape.

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