National Bank pays US$103 million to buy majority stake in Cambodian bank

MONTREAL – National Bank of Canada has paid US$103 million to increase its ownership in a Cambodian bank to 90 per cent.

The Montreal-based company (TSX:NA) had previously owned 42 per cent of ABA Bank, or Advanced Bank of Asia.

It estimates that ABA Bank will add 17 cents to its diluted earnings per share for its 2016 financial year, which ends Oct. 31.

That includes a gain of 12 cents per share from a re-valuation of its earlier investments in ABA Bank.

ABA bank has 1,300 employees and 35 branches that manage US$925 million in assets for individual and business clients.

Note to readers: This story corrects an earlier version that incorrectly said the purchase price was US$130 million