BAY up on takeover reports

Bank of Ayudhya's share price went up by 7 per cent in the morning session, following the planned entry of a new shareholder - Japan's Mitsubishi UFJ Financial Group.

Following GE Capital's divestment of 7.6 per cent of its stake in BAY on September 25, 2012, it still has 25.4 per cent in the Thai bank (and possibly a significant holding of NVDRs).

"The entry of a new shareholder with corporate banking expertise could strengthen BAY as a financial institution. We, therefore, maintain our BUY rating," Bualuang Securities said in a research note today.
Business daily Nikkei reported last weekend at MUFJ plans to buy a 51 per cent stake in Thailand's Bank of Ayudhya for about 400 billion yen (US$4.1 billion) in a bid to expand its business in Southeast Asia. By turning Thailand's fifth-largest commercial bank into a subsidiary, MUFG aims to offer a wide range of financial services to consumers and businesses in Thailand.

The Thai bank said in a filing to the Stock Exchange of Thailand today that it has not yet been notified by GE Capital, the strategic shareholder, of any transaction. GE has announced the plan to unloaded all stakes in the Thai bank.

BAY share price ended the morning session at Bt35, up Bt2.25 or 6.87 per cent from Friday's closing.

Focusing on retail bank business, the bank last year posted Bt14.6 billion in net profits, up sharply from Bt9.3 billion in the previous year. In the first quarter of this year, its earnings reached Bt4 billion.

BAY up on takeover reports

Bank of Ayudhya's share price went up by 7 per cent in the morning session, following the planned entry of a new shareholder - Japan's Mitsubishi UFJ Financial Group.

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