BANGKOK (Reuters) -- Thailand's Bank of Ayudhya (BAY) said on Wednesday that it will acquire SHB Finance in Vietnam from Saigon-Hanoi Commercial Joint Stock Bank for 5.1 billion baht ($155.77 million).
"We are very pleased to announce that we have signed agreements with SHB to acquire a 100% stake in SHB Finance, SHB's consumer finance subsidiary," Bank of Ayudhya President Seiichiro Akita said in a statement.
Japan's Mitsubishi UFJ Financial Group holds a 76.9% stake in Bank of Ayudhya, Thailand's fifth largest bank by assets.
"The acquisition will enable the bank to capture growth outside of Thailand," BAY said, adding that SHB Finance has more than 200,000 borrowers.
Bank of Ayudhya is the latest lender to expand outside of Thailand for growth opportunities. In 2019, top-ranked Bangkok Bank acquired Indonesia's Bank Permata for about $2.7 billion.
Earlier this year, second-ranked Kasikornbank opened its first branch in Vietnam.
The transaction is subject to regulatory approval will have two phases with SHB transferring 50% of SHB Finance to Bank of Ayudhya in the first phase. The remaining stake will be transferred in the next three years, BAY said in a bourse filing.
The investment will use the bank's internal funds.