SET-listed LH Financial Group (LH Bank) is mulling a major stake in a non-bank financial institution in a bid to branch into nanofinance.
The bank is in talks with two firms that have won nanofinance licences, but it will invest in only one of them, president Sasitorn Phongsathorn said without revealing the names of the targeted companies.
Sasitorn: Seeking nanofinance skills
"Nanofinance requires specialised skills, and we don't have the capability for it, so we're looking at them for an investment opportunity," she said.
The Finance Ministry has so far awarded nanofinance lender licences to four firms — Thai Ace Capital; Fast Money, a subsidiary of SET-listed Srisawad Power 1979; Mackale Group; and Saha Phai Bun (2558).
Loans to non-bank financial institutions represent nearly 20% of LH Bank's total.
"The bank needs a strategic partner and believes the strategic partner will hold more than a 25% stake," Mrs Sasitorn said.
LH Bank has yet to reach a conclusion on a partner yet, although several investors have expressed interest.
In the meantime, LH Bank shareholders yesterday approved a recapitalisation by issuing 439.96 million shares as a stock dividend. One new share will be offered for every 30 held.
LHBANK shares closed yesterday on the SET at 1.91 baht, up one satang, in trade worth 12.2 million baht.