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National Bank of Canada gets controlling interest in Cambodia-based Advanced Bank in $103M deal

Montreal-based National Bank of Canada (C$219.30 billion) increased itsstake to 90% from 42% in Phnom Penh, Cambodia-based in a US$103million transaction.

National Bank purchased a 10% interest in Advanced Bank in2014, and brought its stake to 42% in 2015 through subsequent investments.

According to a May 9 press release, National Bank expectsAdvanced Bank to add 17 Canadian cents to its diluted EPS in 2016, including a12-cent gain from the revaluation of its earlier investment. The deal isexpected to reduce National Bank's common equity Tier 1 ratio by about 18 basispoints in the third quarter of 2016. National Bank added that is not planningany new significant strategic international investments within the next 12months, as it plans to focus on consolidating existing operations.

National Bank has invested a total of US$148 million inAdvanced Bank to date, as part of its international growth strategy.

The release said that Advanced Bank has more than US$925million in assets and 35 branches.