Central Thai bank to sell assets
(2 December 2009 – Asia) Thailand’s central bank plans to approach potential buyers this week about its 47.6 percent holding in Siam City Bank; Thailand’s sixth largest bank by market capitalisation.
Details of the proposed sale were reported by Bloomberg and their unidentified source said that a list of companies to be sent preliminary documents about the sale include Standard Chartered Plc, ANZ, Bank of Nova Scotia, China Construction Bank Corp and Bank of China.
The bank is seeking around US$1 billion (A$1.09 billion) and will be the central bank’s second sale since June 2008, as it sheds stakes in commercial banks seized during the 1997-1998 crisis to raise funds.
The central bank, which owns the Siam City stake through its Financial Institutions Development Fund, said last week that it plans to start accepting bids in mid-December and hopes to have the sale completed by end of March.
The source speaking to Bloomberg said that the bank may eventually sell its entire holding and UBS AG has been hired to arrange the sale.
Tongurai Limpiti, the central bank’s assistant governor who’s in charge of the Financial Institutions Development Fund, declined to comment to Bloomberg.
The US$1 billion price would value the central banks holding at around 33 baht a share, according to data complied by Bloomberg.
Sirinattha Techasiriwan, analyst, Kasikorn Securities Co, said that if the central bank achieves that price, it would be considered quite high; and added that Kasikorn Securities Co rates the shares neutral.
The bank is seeking around US$1 billion (A$1.09 billion) and will be the central bank’s second sale since June 2008, as it sheds stakes in commercial banks seized during the 1997-1998 crisis to raise funds.
The central bank, which owns the Siam City stake through its Financial Institutions Development Fund, said last week that it plans to start accepting bids in mid-December and hopes to have the sale completed by end of March.
The source speaking to Bloomberg said that the bank may eventually sell its entire holding and UBS AG has been hired to arrange the sale.
Tongurai Limpiti, the central bank’s assistant governor who’s in charge of the Financial Institutions Development Fund, declined to comment to Bloomberg.
The US$1 billion price would value the central banks holding at around 33 baht a share, according to data complied by Bloomberg.
Sirinattha Techasiriwan, analyst, Kasikorn Securities Co, said that if the central bank achieves that price, it would be considered quite high; and added that Kasikorn Securities Co rates the shares neutral.
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