Taiwan's CTBC Bank invests Bt16.6 bn in LHBank

CTBC Bank, a subsidiary of CTBC Financial Holding, is Taiwan’s largest private bank with asset value of more than US$109 billion with over 106 outlets in 14 countries.

In the Thai bank's statement, both signed a memorandum of understanding. LHBank would offer new shares worth Bt16.59 billion to CTBC in a private placement, equivalent to 35.6 per cent of the Thai bank's capital. In a separate MoU with the Taiwanese bank, two major shareholders - Land and Houses and Quality Houses - also agreed to dilute their stakes to 21.9 per cent and 13.7 per cent, respectively. 

LHBank’s president Sasitorn Phongsathorn said that both parties would take necessary steps to obtain approval from Bank of Thailand, the Securities and Exchange Commission Thailand, the Financial Supervisory Commission Taiwan and LHBank’s shareholders to ensure that the transaction be completed around the end of the third quarter of 2016.

"This strategic partnership will be mutually beneficial to both LHBANK and CTBC Bank by enlarging LHBANK’s tier 1 capital by more than 2 folds to over Bt32 billion (or 21.3 per cent of risk assets)," said Sasithorn. CTBC is also set to strengthen LHBank's wealth management, digital banking and trade finance as well as enhance the business capacity of other financial units under Land and Houses Financial Group, including Land and Houses Fund Management Co Ltd, Land and Houses Securities Plc and Land and Houses Advisory Co Ltd.

LHBANK now operates with 127 branches across Thailand with total asset size of Bt200 billion.