(18 May 2004 – Singapore) Singapore’s United Overseas Bank has struck a deal with ABN Amro to buy an 80.77 percent stake in Thailand’s Bank of Asia for a reported US$553.5 million.The sale was finalised on Tuesday and builds on the bank’s recent acquisition of 23 percent of Bank Buana Indonesia in April.
UOB chief executive Wee Cho Yaw said the acquisition allows the bank to expand its platform and elevate the scale of its operations”. UOB already owns a controlling stake in Thailand’s UOB Radanasin Bank.
The purchase of Bank of Asia is subject to regulatory approval from the Thai Ministry of Finance and the Thai central bank.
Analysts have reacted positively to the move by UOB as Singapore banks are currently reporting high earnings. The acquisition is tipped to bolster UOB’s EPS by 2.1 Singapore cents per share upon completion.