South Korea's KB Kookmin Bank struck a deal to acquire a 70% stake in Cambodia's PRASAC Microfinance Institution Ltd. from Sri Lanka-based nonbanking lender LOLC Holdings Plc for US$603.4 million, The Korea Herald reported Dec. 26.
The deal is expected to close within three months, subject to due diligence and regulatory approvals in South Korea and Cambodia. KB Kookmin Bank obtained prior approval from Cambodian authorities for the acquisition in May, the outlet reported.
The South Korean bank plans to acquire the remaining 30% stake in PRASAC Microfinance at least two years after the transaction.
LOLC Holdings, formerly Lanka Orix Leasing, and Bank of East Asia Ltd. acquired 47.75% and 21% stakes, respectively, in PRASAC Microfinance for US$186 million and US$78 million in March 2017. The deal raised LOLC Holdings' stake in the microfinance firm to 70%. The remaining 9% stake is held by PRASAC Staff Co. Ltd., according to S&P Global Market Intelligence data.
PRASAC Microfinance operates a total of 177 branches in Cambodia, the publication reported.
KB Kookmin Bank is a unit of KB Financial Group Inc.