MUFG unit takes 50% stake in Security Bank’s finance company
Thailand’s fifth largest financial group, Bank of Ayudhya (BAY) is acquiring a 50% interest in SB Finance Co. Inc. for P1.83 billion, marking its entry into the Philippines as it ramps up its presence in in Southeast Asia.
BAY, is a member of Japan’s Mitsubishi UFJ financial Group (MUFG), will purchase 7.08 million shares in Security Bank Corp.’s consumer finance subsidiary. MUFG has a 20% stake in Security Bank.
SB Finance is the fourth biggest consumer finance firm in the Philippines in terms of gross loans with a total portfolio of P3.5 billion. It is focused on the mass market segments.
Its partnership with BAY, which is a leading consumer finance providerin Laos, Cambodia and Myanmar, part of its aggressive strategy to expand its retail offers, serve more customers and substantially grow its market share.
Security Bank and BAY intend to jointly explore opportuniites in personal loans, motorcycle loans and insurance.