Canada’s Scotiabank yesterday announced it has completed the acquisition of an additional 24 percent of stake in Thanachart Bank, Thailand’s eighth-largest bank and leading automobile lender, for 7.7 billion baht (about C$268 million), increasing its stake to 49 percent as limited for foreign banks in Thailand.
Scotiabank, the trademark of the Bank of Nova Scotia which is Canada’s second largest bank by assets, said in its statement that it would purchase a total of 416 million shares in Thanachart Bank from Thanachart Capital Plc, which is the major shareholder of Thanachart Bank.
Thanachart Bank, Thailand’s eighth-largest bank and leading automobile lender, and its subsidiaries posted a net income of about 1.87 billion baht, or about C$67 million, during the past year, an increase of about 40.9 percent from the previous year.
Rob Pitfield, head of Scotiabank’s International Banking Group, said in a statement that the Thai market has “solid fundamentals with good long-term growth prospects” and Scotiabank’s increased investment in Thanachart Bank is a great opportunity for the Canadian bank to capitalize on the strength of the Thai market.
The statement also said the higher stake in Thanachart Bank will increase the number of Scotiabank representatives on Thanachart Bank’s 10-member board of directors from two to three.
Meanwhile, Suphadej Poonpipat, chairman of Thanachart Bank’s executive committee and chief executive officer, said, “Through this investment, Scotiabank has re-affirmed its commitment to supporting Thanachart Bank’s growth and development initiatives. The partnership between Thanachart Bank and Scotiabank leverages the strengths of both of our institutions and is strengthened by our shared commitment to the exciting potential of Thailand.”