Bank of Ayudhya (BAY’s) public company has entered into an agreement to acquire AIG Retail Bank public company and AIG Card Thailand company.
The transaction, subject to the approval of the Bank of Thailand and Bank of Ayudhya public company shareholders, is expected to be completed in April 2009.
Under the terms of the agreement, BAY will acquire 99.5% of the shares of AIG Retail Bank and 100% of AIG Card Thailand for a total consideration of $58.7 million subject to closing valuation adjustment. In addition, inter-company loans totalling $477 million from American International Group (AIG) will be repaid at closing.
Blackstone Advisory Services provided financial advice to AIG in connection with its global restructuring programme. Deutsche Bank acted as financial advisor and Linklaters served as legal counsel to AIG on this transaction.
Tan Khoon, president and CEO of BAY, said: The acquisition of AIG Retail Bank and AIG Card Thailand emphasises Bank of Ayudhya’s strategy in its inorganic growth plan. It is another step forward in accelerating the bank’s consumer banking business after the GECAL acquisition in 2008.
