Bangkok--4 Feb--Thanachart Bank
TORONTO and BANGKOK, Feb. 3 /CNW/ - Scotiabank today announced that it has completed the acquisition of an additional 24 per cent of Thanachart Bank, Thailand's eighth-largest bank and leading automobile lender, for THB7,655 million approximately C$270 million. Scotiabank will purchase 416 million shares from Thanachart Capital raising Scotiabank's holding in Thanachart Bank to 49 per cent, the regulatory limit for foreign banks in Thailand.
"The Thai market has solid fundamentals with good long-term growth prospects," said Rob Pitfield, Group Head, International Banking, Scotiabank. "Scotiabank's increased investment in Thanachart Bank is a great opportunity for us to capitalize on the strength of the Thai market and on the strong relationship that we have already built with Thanachart Bank."
As a result of today's investment Thanachart Bank's major shareholders now include Scotiabank, and Thanachart Capital Public Company Limited (holding 50.9 percent) with retail investors holding 0.1 percent. The higher stake in Thanachart Bank will also increase the number of Scotiabank representatives on Thanachart Bank's Board of Directors from two to three.
"Through this investment, Scotiabank has re-affirmed its commitment to supporting Thanachart Bank's growth and development initiatives," said Suphadej Poonpipat, Chairman of the Executive Committee and Chief Executive Officer of Thanachart Bank. "The partnership between Thanachart Bank and Scotiabank leverages the strengths of both of our institutions and is strengthened by our shared commitment to the exciting potential of Thailand," said Suphadej.
"Thanachart Bank is a solid financial institution, with a very strong core business in the automobile sector and a solid management team," added Michele Kwok, Senior Vice President, Asia/Pacific & Middle East. "We are confident that this additional investment will enable Scotiabank to continue to add strategic value that will generate strong financial returns."
About Thanachart Bank
Thanachart Bank is Thailand's eighth-largest bank in terms of assets and the country's leading automobile lender. As of December, 31 2008 the consolidated net income of Thanachart Bank and its subsidiaries was 1,870 million baht (C$67 million), an increase of 543 million baht or 40.9 percent from the previous year.
Going forward, Thanachart Bank will look to maintain its leadership position in the robust Thai automobile financing sector, while at the same time seeking to develop greater diversification in its lending portfolio by increasing its focus on corporate finance. Other growth opportunities that will see increased focus from the bank include SME loans, housing loans, consumer loans (including credit cards) and trade finance.
In order to meet the growing banking needs of the Thai market, Thanachart Bank plans to open 40 new branches by the end of 2009 increasing its total branch network to 255.
About Scotiabank
Scotiabank operates in 11 countries in the Asia-Pacific region, with about 650 employees. The bank primarily offers corporate and commercial products and services, including loans, trade finance, treasury, precious metals, foreign exchange, correspondent banking, loan syndications, securities investment and retail mortgage financing in selected countries. Scotiabank has been in Thailand since the Bank opened a Representative Office in Bangkok in 1981.
Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With 69,000 employees, Scotiabank Group and its affiliates serve approximately 12.5 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate and investment banking. With $508 billion in assets (as at October 31, 2008), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.
For further information: Napaporn Saengkaew, Thanachart Bank at 02-217-8000 or
[email protected]; Krista Pawley, Scotiabank at (416) 866-3703 or
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