Thailand-based Siam Commercial Bank (SCB) has agreed to acquire a 51% stake in digital asset and cryptocurrency exchange Bitkub for THB17.85bn ($537m).
Under the terms of the deal, SCB Securities (SCBS) will buy 51% of the ordinary shares from Bitkub’s parent organisation Bitkub Capital Group Holdings.
In addition to the share purchase, the company will also work together with Bitkub as a business partner in developing digital asset operations.
Bitkub Capital Group is valued at a total market capitalisation worth THB35bn.
The transaction is expected to close by the first quarter of 2022, subject to approvals from regulatory authorities, including the Bank of Thailand and the Securities and Exchange Commission.
Also, the acquisition is subject to the results of the due diligence and the fulfilment of all conditions specified in the share purchase agreement.
SCBx CEO and executive committee chairman Arthid Nanthawithaya said: “Digital asset exchange has rapidly gained popularity over the past few years and will grow even further in the long term.
“SCBx Group’s investment in Bitkub, well-known as Thailand’s reliable digital asset trading platform with a record of outstanding growth, will help the SCBx Group create new growth value in the long term amid a new financial world.
“The move is in line with SCBx Group’s strategy to upgrade to a financial technology group, meeting new consumer needs and entering a new competitive arena that will emerge very quickly in the next three to five years.”
SCBx said that its investment in Bitkub is in line with its goal of becoming a financial technology group, and to help create new growth value in the long term.
With the investment, the company aims to address new consumer needs and enter a new competitive arena that is anticipated to emerge in the coming three to five years.
SCB said that it has taken strategic measures to reorganise its structure and transform into the SCBx Group, which became the fourth-largest lender in Thailand.
Bitkub Capital Group CEO and founder Jirayut Srupsrisopa said: “Bitkub has reached a milestone by becoming an important part of Thailand’s digital economy infrastructure.
“Bitkub is no longer just a startup and is now becoming a necessary part of the infrastructure critical for Thailand’s financial industry 3.0.
“Having brought Bitkub to a very important turning point, we needed to elevate Bitkub to the global level, so we turned to a strong partner like SCB to help us achieve our target faster and more sustainably.”
