As per the new takeover strategy, MUFG will present a tender offer to purchase 51% percent stake from General Electric (GE) and others, as GE owns 25% stake, while Thailand’s Ratanarak family holds 22% of the Thai bank.
Following successful completion of the transaction, the acquired entity will be integrated with MUFG existing banking business, and the new entity will operate as its subsidiary.
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 regions.
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. It offers personal loans and credit cards and serves small and medium-sized businesses.
