Taiwan-headquartered Shanghai Commercial and Saving Bank (SCSB) has acquired an 80 percent stake of AMK (Angkor Mikroheranhvatho Kampuchea), one of Cambodia’s leading microfinance institutions.
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The capital amount of the acquisition was not released, but the reasons for AMK’s decision to sell off were.
Firstly, three of the five AMK shareholders are ending their contracts and SCSB will fill the void. They are Rural Impulse Fund II, Société de Promotion et de Participation pour la Coopération Economique, and the Cambodia Laos Development Fund. Agora Microfinance N.V. and AMK Staff Association are still on board.
Secondly, the mission and vision of SCSB and AMK are similar, i.e. to help the people in the lower social and economic rung to move up the economic ladder through appropriate microfinance services and to be sustainable.
The new shareholder brings in investment capital that will advance AMK’s growth and with over 100 years of experience and expertise in the financial sector will enable AMK to do its work more efficiently and effectively.
Kea Borann, AMK’s CEO, said the company’s going into the non-credit business requires an ever-increasing focus on risks and liquidity management, and he is “… reassured by SCSB’s appreciation of our core mission, its support for the existing management team, and its intent to further deepen on our work… “
John Yung, SCSB board member, said that this is the bank’s first acquisition outside China, and the bank, as AMK’s principal shareholder, is “… excited about the future prospects for AMK and for Cambodia … to serve society, support industry and promote international trade.”
“SCSB’s roots in serving the individual who would not traditionally have access to banking services are firmly entrenched in the principles that guide SCSB today. SCSB sees a lot of similarity between when SCSB started as a Bank and where AMK is now.”