SEOUL, Dec. 26 (Yonhap) — KB Bank, a major commercial lender in South Korea, said Thursday that its board of directors approved a plan to take over a Cambodian financial company for US$634 million.
Under the deal, KB Bank will own a 70-percent stake in PRASAC Microfinance Institution, Cambodia’s leading microfinance player, and seek to buy the remaining stake within two years, according to the lender.
PRASAC Microfinance operates 117 branches across the country, and is the third-largest financial institution in terms of loan extension.
Last year, the Cambodian financial company logged a net profit of 90.7 billion won, with its return on equity standing at 29.4 percent.
The deal will help KB Bank expand its presence in the Southeast Asian region, the Korean lender said.