Tuesday, October 6, 2009

Thai Thanachart Bank to buy Siam City Bank SCIB.BK

Thai Thanachart Bank to raise $1.2 bln in rights issue

Tue Oct 6, 2009 10:05pm EDT
BANGKOK, Oct 7 (Reuters) - Thailand's Thanachart Bank (TBANK), 49 percent owned by Canada's Bank of Nova Scotia (BNS.TO: QuoteProfile,ResearchStock Buzz), plans to raise 40 billion baht ($1.2 billion) in a rights issue to fund the acquisition of a stake in in Siam City Bank SCIB.BK, its chairman said.
"It is in preparation in order to buy a stake in SCIB if we win the bid...and the rest will be used to boost our capital base," Chairman Banterng Tantivit said late on Tuesday.
Under the plan, which got approval from a shareholder meeting on Tuesday, the bank would issue up to 4 billion new shares with a par value of 10 baht each to raise its registered capital to 59 billion baht from 19 billion baht.
The share sale might be in one tranche or several tranches, according the bank's statement issued to its shareholders.
Banterng declined to disclose the amount of funds for the acquisition until the bank completed due diligence.
TBANK, also 50.9 percent held by its parent firm Thanachart Capital TCAP.BK, is aiming to bid for a 47.58 percent stake in Thailand's seventh-largest lender, Siam City Bank, held by the Financial Institutions Development Fund (FIDF), the Bank of Thailand's rescue arm. ($1=33.33 Baht) (Reporting by Manunphattr Dhanananphorn; Writing by Arada Kultawanich; Editing by Jason Szep)

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