Thailand’s Bank of Ayudhya ready to sell $5.6b stake

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KRUNGSRIIn what is the biggest acquisition by a Japanese bank in Asia ever, Japan’s Mitsubishi UFJ Financial Group has launched a bid for a majority stake in Thailand’s fifth largest Bank of Ayudhya for $5.6 billion, more than the  $4.1 billion initially estimated by analysts.

Mitsubishi UFJ said it will buy the 25.3 per cent stake from US investment group GE Capital, a subsidiary of General Electric, which is currently restructuring its holdings in Asia, whereas Japan’s banks are seeking to diversify from their margin-pressured home market.

The  Japanese are paying twice Ayudhya’s book value, which represents a roughly 50 per cent premium to the average market valuation of Thai banks, Bloomberg says.

Mitsubishi UFJ wants to expand the retail and corporate business of Bank of Ayudhya, which operates its branches under the ‘Krungsri’ brand. The bank currently has a network of around 600 branches in Thailand.

After approval by Thailand’s capital market authorities, the deal will  be finalised from November to December 2013, Mitsubishi UFG said in a release on July 2.

Bank of Ayudhya’s founding family, the Ratanarak family, will hold on to its 25 per cent stake in the bank.

 

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Reading Time: 1 minute

In what is the biggest acquisition by a Japanese bank in Asia ever, Japan’s Mitsubishi UFJ Financial Group has launched a bid for a majority stake in Thailand’s fifth largest Bank of Ayudhya for $5.6 billion, more than the  $4.1 billion initially estimated by analysts.

Reading Time: 1 minute

KRUNGSRIIn what is the biggest acquisition by a Japanese bank in Asia ever, Japan’s Mitsubishi UFJ Financial Group has launched a bid for a majority stake in Thailand’s fifth largest Bank of Ayudhya for $5.6 billion, more than the  $4.1 billion initially estimated by analysts.

Mitsubishi UFJ said it will buy the 25.3 per cent stake from US investment group GE Capital, a subsidiary of General Electric, which is currently restructuring its holdings in Asia, whereas Japan’s banks are seeking to diversify from their margin-pressured home market.

The  Japanese are paying twice Ayudhya’s book value, which represents a roughly 50 per cent premium to the average market valuation of Thai banks, Bloomberg says.

Mitsubishi UFJ wants to expand the retail and corporate business of Bank of Ayudhya, which operates its branches under the ‘Krungsri’ brand. The bank currently has a network of around 600 branches in Thailand.

After approval by Thailand’s capital market authorities, the deal will  be finalised from November to December 2013, Mitsubishi UFG said in a release on July 2.

Bank of Ayudhya’s founding family, the Ratanarak family, will hold on to its 25 per cent stake in the bank.

 

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