On March 11th, Thanachart Bnk confirmed that it has reached an agreement to acquire almost 48% of Thailand’s Siam City Bank.
The agreement is subject to regulatory approvals in Thailand. The stake in Siam City Bank is currently owned by Thailand’s Central Bank through the Financial Institutions Development Fund (FIDF).
The Bank of Nova Scotia owns 49% of Thanachart Bank.
Upon closing of the 48% stake of Thanachart Bank, it will launch an offer for the remaining shared of Siam City Bank, as it says in the securities laws in Thailand. Once the transaction is completed of the offer, and any additional regulatory approvals, Thanachart Bank and Siam City Bank would be merged.
Scotiabank would continue to own 49% of the merged bank; the merged bank would henceforth be known as Thanachart Bank with Thanachart Capital Pcl, owning almost all of the remaining 51%.
Scotiabank has operated in Thailand since 1981. In 2007, Scotiabank acquired 24.99% of Thanachart Bank, and it increased its stake to 49% in 2009.
Siam City Bank is the 8th largest bank in Thailand, with about C13.9 billion in assets and a substantial nationwide distribution network.
With the completion of this deal we will see Scotiabank have many growth options in the Thai market.