KB Kookmin Bank will take over Cambodia's Prasac Microfinance for US$603.4 million.
The bank’s board approved a plan to acquire a 70 percent stake in Prasac Microfinance, Cambodia's largest microfinance deposit-taking institution (MDI), at a meeting on Dec. 26. After the acquisition, the Korean lender will become the largest shareholder of Prasac Microfinance. It plans to take over the remaining 30 percent stake after two years.
Prasac Microfinance is the No. 1 MDI in Cambodia with an outstanding business performance. Last year, it enjoyed a 41.4 percent share of the MDI market in Cambodia with 177 sales networks. Unlike regular microfinance institutions (MFIs), MDIs can accept periodic deposits and savings deposits.
Prasac Microfinance ranks third in total loans among Cambodia's financial institutions including banks. It is stably generating profits based on its high growth rate. It posted an ROE of 29.4 percent, an NIM of 8.3 percent and about US$78 million in net profit in 2018.