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Baht/$ 33.32/36
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GOLD |
15,150
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The Bank of Thailand has petitioned the Finance Ministry to approve an increase in the foreign ownership limit for BankThai Plc.
Malaysia's CIMB Group announced last month it would pay 5.9 billion baht to purchase a 42.13% stake in BankThai from the Financial Institutions Development Fund. CIMB will also tender for all remaining shares at the acquisition price of 2.1 baht.
The transaction requires Finance Ministry approval as the foreign limit of 49% could be exceeded under the deal.
Sorasit Soontornkes, an assistant central bank governor, said request for a waiver of the foreign limit was made to the Finance Ministry on Monday.
He said the transaction would strengthen BankThai's financial position.
''Under the agreement made between FIDF and CIMB Group, all procedures regarding the share purchase are to be completed within five months or in November,'' Mr Sorasit said.
BankThai, with 210 billion baht in assets and 87 billion baht in outstanding loans, showed a net profit of 214 million baht in the second quarter of 2008 thanks to an investment gain, against a 514 million baht loss a year earlier.
The bank posted 2007 losses of 6.9 billion baht and first quarter losses of two billion due largely to provisioning expenses against its investments in offshore collateralised debt obligations.
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