However, some details in the contract still have to be finalised, which is why the signing has been postponed.
“The merger will certainly be signed in the next day or two and there is a high possibility that it will be carried out on Thursday,” the source said. “A press conference for the media is expected, where all details will be announced for analysts on the same day.”
He said the next step would include informing the employees of both companies about the merger.
For the merger, TMB was responsible of sourcing Bt130 billion to buy out its previous owners, Thanachart Capital PCL (TCAP) and Scotia Bank.
“After receiving the money, of which Bt80 billion is for shares, TCAP will spend Bt25 billion to purchase shares in its subsidiaries and other companies that Thanachart Bank has invested in,” the source said.
TCAP will also spend Bt45 billion to purchase TMB’s shares, meaning it will have Bt10 billion left from the transaction.
After the merger, the new bank will be called “TMB-Thanachart Bank”, and the shareholding structure will be changed.
The ING Group will be the largest shareholder with 21 per cent, followed by TCAP with 20 per cent, the Finance Ministry with 18 per cent and Scotia Bank with 5 per cent. The remaining 36 per cent will go to individual shareholders.
No layoffs are expected, though top management positions from the CEO will undergo changes, the source said.
“Positions will be adjusted to suit the business situation and those who do want to stay can seek early retirement, which the bank will be ready to cover according to the labour law,” he said.
Published : August 07, 2019
By : The Nation