Breaking News! KBANK Awaits Approval from BOM to Acquire 35% of Myanmar’s Bank!

Kasikornbank Public Company Limited (KBANK) has been reportedly waiting for approval from the Central Bank of Myanmar to acquire a 35% stake in Ayeyarwaddy Farmers Development Bank, according to the Myanmar Times.

 

Citing KBANK’s President Pipit Aneaknithi, the newspaper reported that the acquisition will enable the two companies to expand business across emerging markets in Southeast Asia.

The value of the acquisition has yet to be revealed while Ayeyarwaddy Farmers Development Bank is an unlisted bank with an asset totaling around $190 million (approximately 5,750 billion baht).

 

Myanmar has just relaxed regulators recently to allow foreign lenders to own more than 35% of the local banks from this year onwards. Meanwhile, Asian banks including Japanese and Singaporean banks are also eyeing to expand their businesses to emerging countries in Southeast Asia where the economy has a higher growth rate than those at home.

Thai banks are also making some movement as of late. Last month Bangkok Bank Public Company Limited (BBL) just announced a takeover in Indonesian PT Permata Bank with an investment of 81 billion baht. KBANK also purchased a 10% stake in the Indonesian PT Bank Maspion as well in 2017.