Bank of Ayudhya (BAY) and GE Capital have reached an in-principle agreement on the sale of GE Money’s businesses in Thailand to BAY. The bank has reported that GE Money Thailand has more than 2.2 million cards in circulation through its Central and Robinson credit cards and joint ventures with Tesco and Bank of Ayudhya (Krungsri Credit Card).
GE Capital also has an investment in BAY and holds a 33% stake in the bank.
Mr. Veraphan Teepsuwan, Chairman of BAY, said: “The prospective purchase of GE Money, is an innovative move forward. It will leverage the BAY-GE synergies and at the same time, enhance BAY’s competitiveness and economies of scale.”
Mr. Dmitri Stockton, President and CEO of GE Capital Global Banking, said: “This transaction meets our corporate objectives of building scale and leveraging the strength of our partnerships in key emerging markets. Bringing these two successful organizations together will allow us to maximize value for our shareholders and strengthen our ability to serve customers.”
The proposed transaction is subject to various regulatory, corporate and shareholder approvals, as well as the completion of a definitive agreement. If closed, the transaction would represent an investment of approximately $391million, subject to closing adjustment.
