Siam Commercial Bank confirmed on Wednesday that it has reached an agreement to acquire 100% of the shares in the consumer finance lender Home Credit Vietnam in a deal worth 31 billion baht.
The transaction is expected to be completed by the first half of 2025, subject to approvals from the relevant authorities, said SCB X Plc, the parent holding company of the country’s biggest bank by market value.
Established in 2008, Home Credit Vietnam offers loans for consumer durables, revolving loans, cash loans and two-wheeler loans to the mass and upper-mass market consumer segments. It is the second-largest player in Vietnam’s consumer finance market with a share of 14%, according to SCB X.
Home Credit Vietnam in 2022 had net profits of 1.3 trillion dong, equivalent to 1.9 billion baht, with a compound annual growth rate of 18.7% in total assets over the last decade.
“The acquisition of Home Credit Vietnam marks a significant milestone in SCB X’s journey to become a leading regional financial technology group,” said chief executive officer Arthid Nanthawithaya.
Home Credit Vietnam is part of the Home Credit Group, which was established in 1997 in the Czech Republic.
Home Credit has been streamlining its operations as its parent holding company PPF — controlled by the family of the late Czech billionaire Petr Kellner — shifts its investment focus back to Europe.
The lender previously sold its units in Indonesia and the Philippines to Thailand-based Bank of Ayudhya.
Home Credit also has operations in several countries across central and eastern Europe and the former Soviet Union.
PPF is a holding company with interests in finance, telecommunications, manufacturing, media and biotechnology. Kellner was 56 when he died in a helicopter crash in 2021.