Mitsubishi UFJ Financial Group Inc is seeking to sell its Thai unit to Bank of Ayudhya Pcl in return for about 8% of Thailand’s fifth-largest lender, said three people with knowledge of the matter.
Bank of Ayudhya would issue new shares to Mitsubishi UFJ, helping the Japanese bank's effort to build a controlling stake in the lender, the people said, asking not to be identified as the details are private. The proposed sale would value the Mitsubishi UFJ business at about 18.2 billion baht (US$588 million), based on Bank of Ayudhya’s market capitalisation of 227.8 billion baht.
Mitsubishi UFJ this month offered to buy as much as 75% of Bank of Ayudhya for $5.6 billion from shareholders including General Electric Co (GE), which agreed to sell its 25% (BAY) stake to Japan's largest lender. Mitsubishi UFJ is seeking to purchase as much an additional 50 percent of Bank of Ayudhya from other investors.
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