Prudential, a UK-based financial services group, has reached an agreement to sell 100% of its consumer finance business in Vietnam, Prudential Vietnam Finance Company (PVFC), for a consideration of US$151 million, subject to regulatory approvals.
In a statement yesterday, Prudential said that the agreement is with Shinhan Card, a subsidiary of the leading Korean financial group, Shinhan Financial Group.
Prudential and Shinhan have also agreed on a new long-term bancassurance partnership in Vietnam and Indonesia.
PVFC was launched in 2006 as the first foreign non-bank financial institution licensed for consumer finance lending in Vietnam. Today, it is the fourth largest consumer finance company by outstanding loan balances.
Prudential said that it remains fully committed to the Vietnamese market through its life insurance business, Prudential Vietnam Assurance, and asset management business, Eastspring Investments Fund Management (Vietnam).
Mr Nic Nicandrou, Chief Executive of Prudential Corporation Asia (PCA), said: "PVFC is a high quality business but is not core to our strategy in Vietnam. We are delighted that Shinhan will be able to lead this consumer finance business through to the next stage of its development. Vietnam remains an attractive and important market to Prudential where we have high quality and fast-growing life insurance and asset management operations.
"As part of this transaction, we are further expanding our regional platform through the new long-term bancassurance partnership with Shinhan in both Vietnam and Indonesia to continue serving the growing savings and protection needs of the Asian population."
PCA is a business unit of Prudential of the UK, comprising its life insurance operations in Asia and its asset management business, Eastspring Investments. It is headquartered in Hong Kong. PCA has operations in 12 markets in Asia, covering Cambodia, China, Hong Kong, India, Indonesia, Laos, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Shinhan Financial Group is a leading financial institution in Korea with a diversified business portfolio across banking, credit cards, securities brokerage, life insurance, asset management and leasing. Shinhan Card is the largest credit card company in the country. Shinhan Financial Group has had a presence in Vietnam since 1993 and in Indonesia since 2015.