Thai Military Bank buys stake in Macquarie Securities
(27 April 2005 – Thailand) Thai Military Bank is set to buy a 51 percent stake in Macquarie International Holdings’ Thailand based broking business, Macquarie Securities.
TMB signed an agreement to purchase 10.2 million shares for 550 million baht (A$13 million) and also pay an additional premium of 102 million baht (US$2.5 million).
The Thai bank will also pay interest on the deal at the end of next year if the business manages to better the average stock broking revenue for institutional investors for the past three years.
The deal is part of TMB’s strategy to enter new businesses and continue growing on the back of a stronger performance over the past 12 months. The bank posted a 1.5 billion baht net profit last year, recovering from a loss the previous year.
TMB merged with Singapore’s DBS Thai Danu Bank and state controlled Industrial Finance Corp a year ago after efforts to find a buyer fell through.
ANZ was in discussions to buy a stake in the bank before talks broke down when the Australian bank decided the TMB did not fit its risk profile at that stage.
The Thai bank will also pay interest on the deal at the end of next year if the business manages to better the average stock broking revenue for institutional investors for the past three years.
The deal is part of TMB’s strategy to enter new businesses and continue growing on the back of a stronger performance over the past 12 months. The bank posted a 1.5 billion baht net profit last year, recovering from a loss the previous year.
TMB merged with Singapore’s DBS Thai Danu Bank and state controlled Industrial Finance Corp a year ago after efforts to find a buyer fell through.
ANZ was in discussions to buy a stake in the bank before talks broke down when the Australian bank decided the TMB did not fit its risk profile at that stage.
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