Bank of Ayudhya (BAY), a Thailand-based bank and GE Capital completed the transfer of GE Money’s businesses, GE Money Thailand (GEMT) to BAY, following approval by the Bank of Thailand. The transaction represents an investment of approximately $417.9m. As subsidiaries of BAY, consumer businesses under GEMT will continue to operate as usual.
BAY said that the acquisition of GEMT accelerates the growth of BAY’s consumer banking portfolio by increasing its retail lending portfolio from 36% to 42% of BAY’s total loans. The acquisition of GEMT is expected to enhance BAY’s competitiveness, adding significant scale and diversity to BAY’s core consumer banking business. With the addition of GEMT’s current portfolio, BAY is likely to have over 3m cards in circulation and serving over 8m customers, in Thailand.
Veraphan Teepsuwan, chairman of BAY, said: “Today’s acquisition of GE Money Thailand paves the way for BAY to become a leader in the Thai consumer banking sector. We will continue to execute on plans to grow BAY’s consumer banking portfolio to 50% of the overall portfolio, with a focus on boosting organic growth as a key priority. With BAY’s strategic partner, GE Capital, we will leverage our combined strengths to become a stronger and more formidable player in Thai consumer banking market.”
Dmitri Stockton, president and CEO of GE Capital global banking, said: “We are very excited by the strategic opportunities that are created through the combination of these two complementary organizations. With the transaction completed, we now look forward to working with our partners to maximize opportunities for BAY’s continued growth and development.”
