Financial firm J Trust of Japan buys 55% stake in ANZ Royal Bank (Cambodia)

21, Aug. 2019

Japanese financial firm J Trust Co. has bought a 55 percent stake in a major Cambodian commercial bank, ANZ Roya Bank (Cambodia) Ltd., as a foothold for its further business expansion in the Southeast Asian Mekong region.

As a result of the buyout, the Phnom Penh bank has become a consolidated subsidiary of J Trust and was renamed J Trust Royal Bank Ltd. (JTRB), J Trust said in a statement on Monday. Former J Trust Managing Director Toru Myochin is due to be appointed the revamped bank’s CEO pending approval from the National Bank of Cambodia.

In the deal, J Trust purchased 412,500 shares in ANZ Royal Bank from ANZ Funds Pty Ltd., the management company of major Australian multinational firm Australia and New Zealand Banking Group Ltd. The remaining 45 percent is owned by Royal Group Finance Co., a financial unit of local conglomerate Royal Group of Companies Ltd., the statement said.

The acquisition price will be disclosed after an audit, a J Trust official said. It was initially put at 11.4 billion yen ($107 million) when the buyout plan was announced in May last year. The deal, originally set to be completed in May this year, had been delayed pending the establishment of an information technology platform and employee training.

J Trust, a Tokyo-based firm primarily engaging in banking and debt collection, had earlier expanded its overseas portfolio through takeovers in South Korea and Indonesia.

According to the statement, the former ANZ Royal Bank had pursued a business strategy to provide high-quality services focused on a variety of financial products, targeting the top 1 percent of companies and the wealthiest 5 percent of the population in Cambodia. In 2018, the bank chalked up net income of 2,414 million yen ($22.65 million) and had total assets of 102,520 million yen.

J Trust aims to expand its business in Cambodia by leveraging “JTRB’s diverse multinational client base combined with the (J Trust) Group’s distinctive debt collection expertise, new product development capabilities and strong network and relationship with large Japanese corporates,” the statement said. JTRB is intended to serve as a “platform for further expansion across the Mekong Region markets such as Cambodia, Myanmar and Laos,” it added.