Vietnam’s consumer finance business for sale

Client
Confidential
Date
June 26, 2021
Services
M&A
Our Role
Deal advisor

Summary

  • The consumer finance company is a member of a join stock bank. The deal will help foreign investors to expand the business in Vietnam.
  • In addition to consumer lending, the company also covers credit card issuance, automobile financing and corporate financing.
  • Contact the M&A Advisor at sophie@gbs.com.vn for more details.

OverviewHigh-level information about the business for sale as below:

  • Charter capital: VND 500 billion
  • Ownership structure: 100% owned by a top 10 joint stock bank in Vietnam
  • HQ: Hanoi, Vietnam
  • Total Assets: VND 621 billion
  • Loan outstanding balance: VND 322 billion
  • Sales channel: 12 cities/ provinces of Vietnam
  • Number of customers: ~12,000
  • Profit before tax in 2020: 4.8 billion VND (2.5 bio not post yet)
  • As of December 31, 2019, the company’s total assets increased by 0.37% compared to 2019.
    Equity increased by 0.27% mainly due to the increase in the retained earnings (an increase of 1.6 bio VND compared to 2019).

Business informationHigh-level information about the business for sale as below:

  • Expansion Potential: Increase brand awareness among existing customers, expand client base, pursue more collegiate partnerships,
  • Employees: 445 FT
  • Years established: 1997

According to Vietnam’s Banking Laws and Regulations, Foreign investors can acquire 100% of the share capital of the company and convert the company into 100% foreign owned company. Such as Lotte Finance Vietnam Company Limited acquired 100% of the share capital of Vietnam Chemical Finance Joint Stock Company

Terms and ConditionsHigh-level information about the business for sale as below:

Deal Terms

  • Option 1: Foreign investors can acquire 100% of the share capital of the company and convert the company into 100% foreign owned company, or
  • Option 2: Foreign investors and the existing owner of the company can convert the company into a Joint Venture, where the foreign investors can own 50% of the share capital of the company.

Expected price

  • Option 1: Legal capital multiple 3.2 times for the license + total asset of the company
  • Option 2: 50% of Legal capital multiple 2.6 times for the license