According to information from Bangkokpost, SCB X Plc, the largest bank in Thailand by market value, is set to acquire Home Credit, a consumer lending company in Vietnam, in a deal worth up to $900 million.
According to sources, the publicly-listed parent company at the Stock Exchange of Thailand became the frontrunner after offering a higher price than its competitors. The potential deal for Home Credit Vietnam is worth between $800 million and $900 million and is expected to be announced as early as this week.
The sources also stated that discussions are ongoing and it is uncertain whether an agreement will be reached. Representatives from Home Credit and SCB X have declined to comment on the matter.
Home Credit started looking for a buyer last year and attracted interest from Thailand’s Kasikornbank and KB Kookmin Bank, a member of KB Financial Group from South Korea at that time.
The divestment in Vietnam is part of Home Credit’s effort to optimize operations as its parent company PPF Group, controlled by the family of the late Czech billionaire Petr Kellner, shifts its investment focus back to Europe. Home Credit is currently reviewing its business operations in Asia after canceling its $1.5 billion IPO in Hong Kong in 2019.
Prior to the Vietnam branch, Home Credit sold its branches in Indonesia and the Philippines to Bank of Ayudhya, a Thai subsidiary of Japanese financial giant Mitsubishi UFJ Financial Group.
Home Credit has been operating in Vietnam since 2008 and is one of the leading companies in the consumer finance installment sector. Home Credit has 12 million customers with 3 main products, including installment loans for motorcycles, installment loans for consumer electronics and household appliances, and cash loans.
