Bank of Ayudhya to buy AIG bank and card businesses
Bank of Ayudhya Plc (BAY) yesterday said it would buy a retail bank and a credit card business from American International Group Inc (AIG) for the total value of almost 2.06 billion baht.
BAY, Thailand’s fifth-largest bank which is 32.93 percent owned by GE Capital International Holding Corp, said in a notification letter to the Stock Exchange of Thailand (SET) that its board of directors had endorsed to purchase shares of AIG Retail Bank Plc, the operator of retail banking businesses, and AIG Card (Thailand) Co Ltd, the operator of credit card and personal loan businesses, under the Bank of Thailand’s supervision.
The bank’s acquisition is expected to be completed within April 2009 subject to the approval of its shareholders and the Bank of Thailand
The letter said the bank would acquire 100% of total paid up shares of the two companies, of which 99.55 percent of AIG Retail Bank (AIGRB) and 100 percent of AIG Card Thailand (AIGCC) which are owned by AIG Consumer Finance Group and affiliates.
The acquisition is expected to help strengthen the bank’s universal banking platform and enable the bank to further grow into the retail segment efficiently and competitively, said the letter.
AIGRB was initially founded as a finance company in 1961 under the name of Bangkok Investment Finance and Securities Plc but later renamed to AIG Finance (Thailand) Plc after AIG CFG invested in BIS as a major shareholder in 1998.
In December 2006, the company has received a retail banking license from the Bank of Thailand to operate under the name of AIG Retail Bank and primarily engaged in auto hire purchase financing, multipurpose loan and inventory financing.
AIG Consumer Finance Group CFG is currently the major shareholder of AIGRB with a 99.55 percent shareholding, with a total registered and paid-up capital of 1,197 million baht.
Meanwhile, AIGCC was founded in 1997 under the name AIA Leasing Co., Ltd., but later changed its name to AIG Card (Thailand) Co., Ltd. in 2000 to offer credit cards and subsequently launched unsecured personal loans in 2003 and unsecured revolving credit in 2005 to broaden its business to tap the growing consumer lending segment.
AIGCC’s shares are currently held by AIG CFG, Dejo Property Ltd, American International Assurance (AIA) and International Adjustments Co., Ltd. at 50, 9.5, 29.5 and 11 percent respectively, with a total registered and paid-up capital of 720 million baht.
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