Khazanah bids $1.8 billion for Thai bank

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KRUNGSRI-OK-PlusMalaysia’s state investment holding Khazanah is bidding for General Electric’s 25.3 per cent stake in Thailand’s Bank of Ayudhya, according to a Reuters  report published on March 15 that cited unidentified sources.

Khazanah is offering $1.8 billion for the stake and is bidding against Japanese banking giant Mitsubishi UFJ Financial Group, the report said.

The proposed acquisition would be the largest purchase of an overseas banking asset by Khazanah. The Malaysian sovereign wealth fund currently manages a portfolio of around $40 billion.

Stock Exchange of Thailand-listed Bank of Ayudhya is Thailand’s fifth-largest bank and has a current market capitalisation of around $7 billion. General Electric Co is selling its stake as it divests non-core assets across the world. The US industry giant has bought 33 per cent of Bank of Ayudhya in 2007 for $626 million and in September 2012 sold 7.6 per cent stake in the Thai bank.

Khazanah recently also made a bid to acquire a $500 million stake in unlisted Thai Life Insurance Co Ltd. Thai Life has 15.3 per cent share of the country’s life insurance market. Thailand’s life insurance penetration, at 2.7 per cent of GDP, is lower than that of other Asean countries such as Malaysia and Singapore (3.3 per cent and 4.3 per cent  respectively), leaving scope for strong growth.

 

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Reading Time: 1 minute

Malaysia’s state investment holding Khazanah is bidding for General Electric’s 25.3 per cent stake in Thailand’s Bank of Ayudhya, according to a Reuters  report published on March 15 that cited unidentified sources.

Reading Time: 1 minute

KRUNGSRI-OK-PlusMalaysia’s state investment holding Khazanah is bidding for General Electric’s 25.3 per cent stake in Thailand’s Bank of Ayudhya, according to a Reuters  report published on March 15 that cited unidentified sources.

Khazanah is offering $1.8 billion for the stake and is bidding against Japanese banking giant Mitsubishi UFJ Financial Group, the report said.

The proposed acquisition would be the largest purchase of an overseas banking asset by Khazanah. The Malaysian sovereign wealth fund currently manages a portfolio of around $40 billion.

Stock Exchange of Thailand-listed Bank of Ayudhya is Thailand’s fifth-largest bank and has a current market capitalisation of around $7 billion. General Electric Co is selling its stake as it divests non-core assets across the world. The US industry giant has bought 33 per cent of Bank of Ayudhya in 2007 for $626 million and in September 2012 sold 7.6 per cent stake in the Thai bank.

Khazanah recently also made a bid to acquire a $500 million stake in unlisted Thai Life Insurance Co Ltd. Thai Life has 15.3 per cent share of the country’s life insurance market. Thailand’s life insurance penetration, at 2.7 per cent of GDP, is lower than that of other Asean countries such as Malaysia and Singapore (3.3 per cent and 4.3 per cent  respectively), leaving scope for strong growth.

 

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