Nod to merger, capital rise, placement at BAY meet
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Shareholders of Bank of Ayudhya yesterday approved the integration of the bank and Bank of Tokyo-Mitsubishi UFJ Bangkok Branch, a capital increase and a private placement of up to 1.5 billion shares at Bt39 each.
Chairman Veraphan Teepsuwan said at an extraordinary shareholders’ meeting that the integration will be completed in December next year.
BTMU Bangkok Branch has assets of Bt583 billion and annual net profit growth of 15 per cent. The Japanese bank has a strong corporate and multinational customer base.
It has 5,900 customers, of which 1,200 are borrowers.
BTMU can help reinforce BAY’s SME and supply chain business.
BTMU is ranked eighth by assets but is the largest among foreign banks in Thailand.
BAY will become a subsidiary of Mitsubishi UFJ Financial Group (MUFG) after the transaction is completed. The benefit to BAY is not only customer expansion or capital strength but also access to sources of funds at lower cost with the help of MUFG, the parent of BTMU.
BAY and BTMU have entered into a conditional branch purchase agreement and have planned for the integration of BTMU’s Bangkok branch and Krungsri subsequent to a voluntary tender offer, in compliance with the Bank of Thailand’s One Presence Policy.
On August 27, Krungsri obtained approval from the central bank for its foreign shareholding to exceed 49 per cent.
BTMU wants to hold more than 51 per cent of BAY.
Veraphan assured shareholders that BAY will keep the name of Krungsri and that BTMU will not delist BAY.
After the tender offer, BTMU will send its executives to oversee the bank. BTMU has to be in charge to make the bank progress and to be responsible to all stakeholders.
All five senior executives from GE, the former major shareholder, will stay at the bank. They include CEO Janic Rae Van Ekeren and president Philip Tan.
BTMU’s network will help the bank in tapping corporations in Asean, he added.
