ANZ has wrapped up its previously announced sale of its 55% stake in its Cambodian joint venture ANZ Royal Bank to Japanese financial holding company J Trust for an undisclosed price.
The transaction signed in May 2018, is said to be in line with ANZ’s strategy to simplify its business and operate fully-owned institutional businesses in the region.
At the time of signing the deal, ANZ said that the proceeds from the sale are equivalent to about A$30m (£16.74m) loss on sale completion. Cambodian conglomerate Royal Group Finance is the other shareholder in ANZ Royal Bank with a stake of 45%.
ANZ Royal Bank was granted a banking licence in Cambodia in late 2004. In 2005, it opened its first branch and ATMs and about four years later, it became the first bank to offer internet banking in Cambodia.
Operations of ANZ Royal Bank
The Cambodian bank provides both retail and commercial banking services.
ANZ Royal Bank operates in two segments – international and institutional banking, and retail banking. Currently, the company is said to be focused on lower-risk markets and targets the largest 1% firms and the wealthiest 5% of the population in Cambodia.
J Trust said that following the completion of the acquisition, ANZ Royal Bank has become its specified subsidiary and has been renamed as J Trust Royal Bank (JTRB).
The Japanese financial holding company said that the acquisition was made as part of its plans to grow its business activities, primarily in Southeast Asia with a focus on mergers and acquisitions of banks and finance companies.
J Trust expects its expertise in retail finance in Japan, Indonesia, and South Korea to contribute greatly to further growth of the acquired business.
The acquisition enables the Company to seek new business opportunities through JTRB. While placing importance on the current corporate and retail financial businesses, JTRB will consider possibilities in more substantial and higher-growth segments.
J Trust, in a statement, said: “The Company will aim for further business expansion by leveraging JTRB’s diverse multinational client base combined with the Group’s distinctive debt collection expertise, new product development capabilities and strong network and relationship with large Japanese corporates.”
The Japanese company plans to use JTRB as a platform for advance its expansion in the Mekong Region markets such as Cambodia, Laos, and Myanmar.
