Malaysia’s CIMB Group yesterday announced it controls 92.04 percent of BankThai after shareholders holding 49.91 percent of BankThai shares, or 3.33 billion shares in total, accepted its tender offer which had closed on January 6.
CIMB, Malaysia’s second largest financial services provider which is owned by Bumiputra-Commerce Holdings Bhd, became the single largest shareholder in BankThai after completing its purchase of a 42.13 percent stake in BankThai from the Financial Institutions Development Fund (FIDF) for 5.9 billion baht on November 5 last year. Later, on November 20, CIMB made a tender offer for the remaining shares of BankThai at 2.10 baht per share.
However, minority shareholders with a total shareholding of 7.96 percent have declined the offer and retain the bank shares.
Nazir Razak, chief executive of CIMB Group, said in a statement that BankThai, the ninth largest bank in Thailand with 147 braches across Thailand, will remain listed on the Stock Exchange of Thailand.
The statement also said that CIMB Group plans to recapitalise BankThai by the end of March at an approximate cost of five billion baht in an effort to enable the bank to compete effectively again.
“BankThai represents an integral component of our regional universal banking platform, which is anchored in Malaysia, Singapore, Indonesia and now Thailand. We should see BankThai’s corporate banking and capital market capabilities strengthen fairly quickly as we leverage on CIMB Group’s regional investment banking platform, while the turnaround of the consumer franchise is expected to take two to three years, ” said Nazir.