Biggest Thai bank said to be near purchase of Home Credit Vietnam

SCB X, Thailand’s biggest bank by market value, is close to an agreement to buy consumer lender Home Credit’s business in Vietnam in a deal that could be worth as much as US$900 million, according to people familiar with the matter.

Bangkok-listed SCB X has emerged as the likeliest buyer after outbidding rivals, the people said. The potential deal, which values Home Credit Vietnam at US$800 million to US$900 million, is expected to be announced as early as this week, the people said, asking not to be named as the process is private. 

Deliberations are ongoing and there is no certainty that a deal will proceed, the people said. 

Representatives from Home Credit’s owner PPF Group NV and SCB X didn’t respond to requests for comment. 

Home Credit kicked off the sale process last year, also attracting interest from Thailand’s Kasikornbank and KB Kookmin Bank, a unit of South Korea’s KB Financial Group, Bloomberg News reported at the time.

Home Credit is streamlining its operations as PPF – controlled by late Czech billionaire Petr Kellner’s family – shifts investment focus back to Europe. The company has been reviewing its businesses in Asia after cancelling a US$1.5 billion Hong Kong initial public offering in 2019.

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Thai banks, KB are vying for US$700 million Home Credit Vietnam

The lender disposed of its units in Indonesia and the Philippines to Bank of Ayudhya, a Thai arm of Japanese bank Mitsubishi UFJ Financial Group. 

Founded in 1997, Home Credit has operations in several countries across Asia, central and eastern Europe, and the former Soviet Union. PPF is a holding company with interests in finance, telecommunications, manufacturing, media and biotechnology. BLOOMBERG