Thai bank buys local MFI in mammoth deal

In what may be the biggest deal in Cambodia’s financial sector history, Thailand-based Bank of Ayudhya has reached an agreement to acquire the local microfinance institution (MFI) Hattha Kaksekar, with the deal expected to be valued at upwards of $140 million. In a statement released yesterday, the Thai bank, commonly referred to as Krungsri, confirmed the agreement to buy Cambodia’s fourth-largest microfinance institution, paving the way for its entry into the Kingdom’s crowded and highly competitive micro-lending sector.

Hout Ieng Tong, president and CEO of Hattha Kaksekar (HKL), said negotiations were still under way for the final sale figure, but that it would exceed $140 million, making it the biggest-ever buyout in the sector. “We needed to execute our expansion plans and were looking for a new partner to do this,” Ieng Tong said, adding that the MFI was approached by the Thai bank.

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