Sumitomo Mitsui Financial to Buy 15% Stake in Vietnamese Bank for $1.53 Billion

By Kosaku Narioka

Sumitomo Mitsui Financial Group Inc. has agreed to acquire a 15% stake in Vietnam Prosperity JS Commercial Bank for 35.9 trillion Vietnamese dong ($1.53 billion) to leverage the local bank's network and expand business collaborations in the Southeast Asian country.

The Japanese bank said Monday that it would acquire the stake through a private placement, subject to regulatory approval, and that the Vietnamese lender would become its equity-method affiliate.

Sumitomo Mitsui said Vietnam Prosperity has a strong presence in the country's retail and small- and medium-sized enterprise sectors.

The Japanese company had formed a tie-up with the Vietnamese bank in May 2022, leading to collaborations in multiple fields and various synergies, it said.

Sumitomo Mitsui's consumer-finance unit also invested in Vietnam Prosperity's consumer-lending unit in October 2021.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

03-27-23 0512ET