Prudential To Sell Consumer Finance Business In Vietnam For $151 Mln

(RTTNews) - Prudential plc (PRU.L), a British financial services group, Tuesday said it has reached an agreement to sell its consumer finance business in Vietnam, Prudential Vietnam Finance Company Limited or PVFC, for a consideration of $151 million, subject to regulatory approvals.

The agreement is with Shinhan Card Co., Ltd. a subsidiary of the Shinhan Financial Group, a Korean financial institution.

Prudential and Shinhan have also agreed a new long-term bancassurance partnership in Vietnam and Indonesia.

PVFC was launched in 2006 as the first foreign, non-bank financial institution licensed for consumer finance lending in Vietnam. At present, it is the fourth largest consumer finance company by outstanding loan balance, the company noted.

Prudential said the company and Shinhan will work closely to ensure a smooth transition of the business. PVFC operations will continue as normal until the transaction has been completed.

Prudential will continue to work in Vietnam through its life insurance business, Prudential Vietnam Assurance Private Limited, and asset management business, Eastspring Investments Fund Management Company (Vietnam).

Nic Nicandrou, Chief Executive of Prudential Corporation Asia, said, "As part of this transaction, we are further expanding our regional platform through the new long-term bancassurance partnership with Shinhan in both Vietnam and Indonesia to continue serving the growing savings and protection needs of the Asian population."