Cathay United Bank plans to buy stake in Cambodia counterpart

Focus Taiwan News Taipei, June 14 (CNA) Cathay United Bank, the banking arm of Cathay Financial Holding Co., has agreed to acquire a 70 percent stake in a Cambodia bank, the financial holding company said Thursday. With the acquisition, Cathay United Bank will become the largest shareholder in Singapore Banking Corp. Ltd. (SBC Bank), while the original Singaporean investors will retain the remaining 30 percent stake, Cathay Financial said. SBC Bank, which was set up in 1993, currently operates 16 offices in Cambodia, including in the capital Phnom Penh, according to Cathay Financial. After the acquisition, Cathay United Bank will have the largest service network in Cambodia among all Taiwanese banks, Cathay Financial spokesman Alan Lee said. In addition, SBC will be Cathay United Bank’s second subsidiary in Southeast Asia, the first having been established in Vietnam, Lee said He said the acquisition is expected to help Cathay United Bank provide better services to Taiwanese investors operating in Cambodia and even in Vietnam. However, Lee declined to disclose the financial terms of the acquisition as the investment plan is pending approval from the boards of directors of the two potential partners and financial authorities in Taiwan and Cambodia. Cathay Financial is scheduled to hold a board meeting Friday to discuss the investment plan. Lee said Cathay United Bank hopes the acquisition plan will be carried out as soon as possible. On its website, United Cathay Bank said it has an overseas presence in Los Angeles, Hong Kong, Singapore, Shanghai, Malaysia, the Philippines, Thailand and Vietnam. (By Tien Yu-pin and Frances Huang) enditem /pc