Kiatnakin Bank-Phatra Capital merger confirmed

 In a statement released on Tuesday, both companies confirmed the plan upon the completion of due diligence. Under the merger, KK will issue shares to Phatra's shareholders, for a swap at the ratio of 1 Phatra share for 0.9135 share of KK. Phatra will then be delisted from the Stock Exchange of Thailand, on the condition that KK builds up its stake in the company to no less than 75 per cent.
 “Kiatnakin Bank and Phatra are each highly competitive and have considerable expertise in their respective lines of business," said Supol Wattanavekin, chairman of the bank.
 This merger is believed to enhance competitiveness and create additional value from joint development of new business opportunities by leveraging management expertise, strength, and leading position in specialized areas in commercial banking, investment banking and capital market.
 The boards of directors of both banks attended a meeting on Feb 27 to approve the plan.
 The merged entity's commercial banking business will be governed by 15 board members, including 3 representatives from Phatra and 6 independent directors. Meanwhile, the investment banking and capital market business will be operated and/or owned by Phatra, with a board of directors that include 3 representatives from the bank.
 Banyong Pongpanich, chairman of Phatra, said that while the company will have more channels for financial products, the bank will be better equipped with a more complete spectrum of financial and capital markets instruments to immediately compete as well as having better diversified income base.
 He expects the merger process to complete by the third quarter, as it is pending for approval from shareholders and relevant regulators.
 "The bank and Phatra have already started to formulate synergies realisation plan to ensure the success of the transaction, to achieve optimum synergies, and to setup business strategy for long term sustainable growth," Banyong said.