Baker McKenzie Taiwan, HBS Law , Clifford Chance and DFDL have acted on Taiwanese Bank SinoPac’s USD550 million purchase of Amret Microfinance Institution, the largest acquisition in Cambodia’s history.
“Obtaining approvals from the National Bank of Cambodia and the Ministry of Commerce was a smooth process as both regulators have been through the process many times. The Consumer Protection Competition and Fraud Repression Directorate-General (CCF) is a relatively new regulator and obtaining approval for the acquisition required a certain amount of capacity building by the HBS Law team to guide the CCF through the process,” Patrick Smith, senior partner at HBS Law, told Asia Business Law Journal.
Kevin Wang, partner and head of corporate at Baker McKenzie Taiwan, echoed this opinion. “The Taiwan authorities are not very familiar with the nature of microfinance institutions (MFIs). We assisted SinoPac in explaining to the Department of Investment Review of the Ministry of Economic Affairs of Taiwan the nature of MFIs in Cambodia, particularly their social responsibility aspects, and the methods adopted by Amret to implement such social responsibility,” Wang told Asia Business Law Journal.
Amret, Cambodia’s largest microfinance deposit-taking institution by total assets, was acquired by Bank SinoPac in a phased transaction. The Taiwanese bank initially acquired an 80% equity stake, with plans to acquire the remaining 20% in two subsequent tranches over two years.
Smith led the team at HBS Law, representing Bank SinoPac with Baker McKenzie Taiwan led by partners Wang and Louis Liu.
Clifford Chance’s team, led by private equity partner Tom Lin, advised the investor consortium, which owns Bank SinoPac, on the international aspects of the deal. Local law advice in Cambodia was provided by DFDL’s team, led by partners Chris Robinson, Vansok Khem and Clint O’Connell.
As one of the largest acquisitions in the region, the transaction highlights increasing foreign investor confidence in Cambodia’s financial system. “It also demonstrates a clear belief in the global context that the financial system in Cambodia remains robust and that there are great opportunities to acquire quality assets that have grown with the aid of development banks,” said Smith.
Wang added, “This deal not only expands Bank SinoPac’s footprint in Southeast Asia but also reinforces its commitment to sustainable and responsible financial development.”
