Thailand’s GL invests in Cambodian microfinance firm

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Cambodia motorcycle1Group Lease Plc (GL), a financial services company specialised on motorcycle lease and listed at the Stock Exchange of Thailand, plans to acquire a microfinance company in Cambodia as part of its effort to boost overseas revenue to more than 50 per cent by 2015, the Bangkok Post reported.

GL’s chief executive Mitsuji Konoshita said negotiations are nearly finalised and the acquisition will be made through its subsidiary, Singapore-based GL Holding. Should the deal go through, GL will become the majority shareholder in the Cambodian firm with a 80 per cent stake.

The microfinance firm has 2 billion baht ($49 million) in outstanding loans and a customer base of 150,000 accounts. Konoshita said said the Cambodian company has no non-performing loans (NPLs), while its net profit increased significantly to about 200 million baht ($4.9 million) last year.

“NPLs in the Cambodian firm are zero but our Thailand operation has a rate of 4.2 per cent now, up from 3.8 per cent in 2012, well below the leasing industry level of 7 per cent,” he said.

GL aims to be the leading motorcycle leasing firm in ASEAN in the next few years. To achieve the goal, it plans to broaden its business into Laos next year, Myanmar in 2015 and Indonesia at a later date.

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Reading Time: 1 minute

Group Lease Plc (GL), a financial services company specialised on motorcycle lease and listed at the Stock Exchange of Thailand, plans to acquire a microfinance company in Cambodia as part of its effort to boost overseas revenue to more than 50 per cent by 2015, the Bangkok Post reported.

Reading Time: 1 minute

Cambodia motorcycle1Group Lease Plc (GL), a financial services company specialised on motorcycle lease and listed at the Stock Exchange of Thailand, plans to acquire a microfinance company in Cambodia as part of its effort to boost overseas revenue to more than 50 per cent by 2015, the Bangkok Post reported.

GL’s chief executive Mitsuji Konoshita said negotiations are nearly finalised and the acquisition will be made through its subsidiary, Singapore-based GL Holding. Should the deal go through, GL will become the majority shareholder in the Cambodian firm with a 80 per cent stake.

The microfinance firm has 2 billion baht ($49 million) in outstanding loans and a customer base of 150,000 accounts. Konoshita said said the Cambodian company has no non-performing loans (NPLs), while its net profit increased significantly to about 200 million baht ($4.9 million) last year.

“NPLs in the Cambodian firm are zero but our Thailand operation has a rate of 4.2 per cent now, up from 3.8 per cent in 2012, well below the leasing industry level of 7 per cent,” he said.

GL aims to be the leading motorcycle leasing firm in ASEAN in the next few years. To achieve the goal, it plans to broaden its business into Laos next year, Myanmar in 2015 and Indonesia at a later date.

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