Japanese bank in Bt177bn deal for BAY's stake
The Bank of Tokyo-Mitsubishi UFJ will today sign the share tender agreement with GE Capital International Holdings, for the latter's 25 per cent stake in Bank of Ayudhya.
In a statement, BMTU said that it will Bt39 a share for the stake, resulting in an immediate gain of Bt2 a share to shareholders. BAY share price closed today at Bt37.
At the price, GE Capital will net Bt59.9 billion from the deal. BTMU, to tender for maximum 75 per cent, will however spend a total of 560 billion yen or Bt177 billion for the majority stake.
In the statement, the Japanese bank said that with its potential for future growth and a track record of consistent economic growth, Thailand has become an economic center of Greater Mekong. Thailand and Japan enjoy a close relationship with numerous Japanese companies now operating in Thailand. Krungsri is one of the leading commercial banks in Thailand offering diversified financial services while holding wide range of client base and market knowledge.
Bank of Ayudhya (Krungsri) is the fifth-largest commercial bank in Thailand with 68 years of history in the country. The Bank provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporation through 601 branches and over 19,000 service outlets
nationwide. Through its Krungsri subsidiaries, the Bank is the largest card issuer in Thailand with 6.2 million accounts (credit cards, sales finance/personal loans) in its portfolio, a major automobile financing service provider (Krungsri Auto), the fastest growing asset management company (Krungsri Asset Management), and a pioneer in microfinance through CFG Services.
