Thailand’s Bank of Ayudhya in $4.1b stake sale
Japan’s Mitsubishi UFJ Financial Group (MUFG) is reportedly in advanced talks to acquire a majority stake of Thailand’s fifth largest bank, Bank of Ayudhya in a deal worth an estimated $4.1 billion, according to a Reuters report.
MUFG, Japan’s largest-lender by assets, has been in talks to buy General Electric’s 25 per cent stake in Bank of Ayudhya for months, but the Thai central bank’s “single presence” policy on bank ownership has been a hurdle as the Japanese bank has sizable operations with Japanese corporations in the country.
Under the latest plan, MUFG would make a tender offer to acquire a 51 per cent stake from General Electric and other shareholders and merge its Thailand operations with Bank of Ayudhya.
The deal would be the biggest acquisition by a Japanese bank in Asia. Last month, Sumitomo Mitsui Financial Group agreed to buy a 40 per cent stake in the Indonesian bank BTPN for $1.5 billion.
Bank of Ayudhya, which has a market value of nearly $7 billion, is the leader in the Thai retail and consumer lending market. It is also growing in SME lending, which would allow MUFG to expand its customer base in Thailand.
Japan's Mitsubishi UFJ Financial Group (MUFG) is reportedly in advanced talks to acquire a majority stake of Thailand's fifth largest bank, Bank of Ayudhya in a deal worth an estimated $4.1 billion, according to a Reuters report. MUFG, Japan’s largest-lender by assets, has been in talks to buy General Electric's 25 per cent stake in Bank of Ayudhya for months, but the Thai central bank's "single presence" policy on bank ownership has been a hurdle as the Japanese bank has sizable operations with Japanese corporations in the country. Under the latest plan, MUFG would make a tender offer to acquire a 51 per...
Japan’s Mitsubishi UFJ Financial Group (MUFG) is reportedly in advanced talks to acquire a majority stake of Thailand’s fifth largest bank, Bank of Ayudhya in a deal worth an estimated $4.1 billion, according to a Reuters report.
MUFG, Japan’s largest-lender by assets, has been in talks to buy General Electric’s 25 per cent stake in Bank of Ayudhya for months, but the Thai central bank’s “single presence” policy on bank ownership has been a hurdle as the Japanese bank has sizable operations with Japanese corporations in the country.
Under the latest plan, MUFG would make a tender offer to acquire a 51 per cent stake from General Electric and other shareholders and merge its Thailand operations with Bank of Ayudhya.
The deal would be the biggest acquisition by a Japanese bank in Asia. Last month, Sumitomo Mitsui Financial Group agreed to buy a 40 per cent stake in the Indonesian bank BTPN for $1.5 billion.
Bank of Ayudhya, which has a market value of nearly $7 billion, is the leader in the Thai retail and consumer lending market. It is also growing in SME lending, which would allow MUFG to expand its customer base in Thailand.
