SinoPac Financial Holdings, a prominent Taiwanese financial group, has taken a significant step in diversifying its portfolio by venturing into the Cambodian banking sector. The group’s subsidiary, Bank SinoPac, announced its plan to acquire Amret, Cambodia’s leading microfinance deposit-taking institution, in a deal valued at approximately $543 million.
This acquisition marks SinoPac’s latest move to broaden its footprint in Southeast Asia, reflecting a strategic shift among Taiwanese companies towards the ASEAN bloc, amid escalating U.S.-China tensions and a drive to reduce economic dependence on mainland China. In 2023 alone, Taiwanese firms invested over $5.22 billion into ASEAN countries, surpassing investments directed towards China for the first time since 1993.
Amret, established in 1991, currently operates across 150 branches in Cambodia, managing assets worth around $2 billion. The acquisition, pending regulatory approval, is structured to take place in three phases, initially seeing SinoPac taking an 80% stake for $435 million.
The move is strategically aligned with Taiwanese President Tsai Ing-wen’s New Southbound Policy, which aims to enhance ties with South and Southeast Asia. This policy is expected to continue under President-elect Lai Ching-te, signaling ongoing support for Taiwanese investments in the region. As geopolitical landscapes evolve, SinoPac’s expansion into Cambodia not only diversifies its asset base but also secures a pivotal position in a fast-growing market.
