Based on the agreement, Bank of Tokyo-Mitsubishi UFJ (BTMU) will initiate a voluntary tender offer (VTO) for Krungsri shares at THB39 ($1.26) per share, aiming to take a majority stake in Krungsri, including GE Capital entire shareholding.
Following completion of VTO, BTMU will replace GE Capital as a major shareholder of Krungsri and partner with the Ratanarak Group, which owns 25% stake in the bank.
The Japanese lender said that the strategic investment aims to further develop BTMU’s business in Asia, as well as launch a complete commercial banking platform in Asia.
This will enable the Japanese financial organization to provide an array of financial products and services to consumers and businesses in Thailand, while also helping the acquirer to expand its business in Southeast Asian region.
The latest acquisition by MUFG will be one of the largest transaction by the company after its 2008 investment of JPY900bn ($9.13bn) in Morgan Stanley.
Founded by the Ratanarak family, Bank of Ayudhya manages nearly JPY3.4trn ($345bn) in assets, while its market capitalization stands at approximately $6.1bn.
Managing 601 branches and more than 19,000 service outlets, the lender offers banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations.
