BAY plans to issue 1.14 bn shares to BTMU

BAY will propose the transaction to a shareholders meeting on October 31 to approve an increase of the bank’s registered capital from Bt60.74 billion to Bt75.74 billion.
Chief executive officer Janice Van Ekeren said in statement yesterday that Krungsri and BTMU had entered a conditional branch purchase agreement and planned for the integration of BTMU’s Bangkok branch and Krungsri subsequent to the voluntary tender offer (VTO), in compliance with the Bank of Thailand’s One Presence Policy.
On August 27, Krungsri obtained approval from the BOT permitting foreign shareholding in the bank to exceed 49 per cent.
BTMU’s Bangkok branch has the largest asset size among the foreign banks operating in Thailand, with total assets of around Bt583 billion.
The planned integration process will start at the beginning of next year, after the completion of VTO, and will take about a year. It will enable the combined bank to deliver a full suite of high-value financial services to a wide range of customers by utilising Krungsri’s domestic franchise and BTMU’s global expertise, Van Ekeren said.
 “Additionally, we have been discussing with BTMU future collaboration in various fields to strengthen the strategic partnership, which will help reinforce Krungsri’s leading position in Thailand and regionally through the offering of a complete range of financial products and services,” she said.
Deutsche Bank has been engaged by Krungsri as financial adviser in relation to the VTO by BTMU for the shares of Krungsri, and the acquisition by Krungsri of BTMU’s Bangkok branch.