Linklaters has advised Hong Kong’s The Bank of East Asia (BEA) on its joint acquisition with Sri Lanka’s Lanka Orix Leasing Company International (LOLC) of a controlling majority stake in PRASAC Microfinance, Cambodia’s biggest microfinance institution (MFI).
The transaction is worth $186 million, according to local media estimates, and is the largest deal to date in Cambodia's banking space. Clifford Chance advised the purchasing consortium, which was represented by Rajah & Tann on matters related to Cambodian law.
BEA and LOLC bought the shares from Netherlands Development Finance Company, Belgian Investment Company for Developing Countries and Dragon Capital Group, which were advised by Mayer Brown JSM. The sellers also tapped Sciaroni & Associates as their Cambodian counsel.
According to a media statement, PRASAC is Cambodia’s largest deposit-taking MFI, with more than $1.3 billion in assets and over $660 million in deposits.
Cambodian MFIs have attracted the interest of international investors, with several large mergers and acquisitions announced in recent years, reported The Phnom Penh Post.
The Mayer Brown team was led by Ho Chi Minh City-based corporate and securities partner David Harrison.