The Thai bank said it is looking to buy a 35 percent stake in the A Bank and has sought approval from the Central Bank of Myanmar (CBM) to do so.

The move will enable KBank to leverage on A Bank’s Myanmar network to expand its reach across the emerging CLMVI (Cambodia, Laos, Myanmar, Vietnam and Indonesia) bloc. Established in 2014, A bank has assets of K314 billion and registered capital of K40 billion.

Pipit Aneaknithi, KBank President, said: “KBank has always aimed to expand its business in Myanmar…with the aim of growing its business and payment system network in alignment with its business strategy of extending its reach to both local and Thai businesses in the AEC+3 (Asean Economic Community + China, Japan and South Korea).”

KBank’s main offerings are in small and medium-size enterprise lending and retail and digital banking.

Mr Aneaknithi added that Myanmar has bright long-term economic prospects thanks to its abundant natural resources, population and its location bordering both China and India. “The banking sector will play a pivotal role in driving the country forward,” he said.

Mr Aneaknithi said KBank gained a thorough understanding of the Myanmar market through its representative office in Yangon. After the CBM allowed foreign banks to hold shares in local banks in January 2019, KBank began hunting for local banks with potential and a similar business concept, leading it to A Bank.

KBank hopes that its investment in A Bank will increase the role of financial services in Myanmar and promote financial inclusion. It added that the partnership will strengthen the Myanmar economy, expand business opportunities and foster cross-border relationships between businesses in Thailand and Myanmar.

A Bank will also benefit from KBank’s human resources and talent, which are an important foundation for jump-starting growth, KBank said.

Source: https://www.mmtimes.com/news/thailands-kbank-acquire-35-stake-myanmars-bank.html