TMB-TBank post-merger executive positions shaping up

TMB-TBank post-merger executive positions shaping up

Mr Piti, chief executive of TMB Bank, is expected to head the new entity.
Mr Piti, chief executive of TMB Bank, is expected to head the new entity.

Piti Tanthakasem, chief executive of TMB Bank, has been tipped to take over the reins at the merged TMB-Thanachart Bank, while TBank president Praphan Anupongongarch will be president at the bank.

Suphadej Poonpipat, vice-chairman at Thanachart Capital (TCAP), is expected to get a seat on the new bank's board, said Banterng Tantivit, chairman of TCAP, at a shareholding meeting on Monday.

Shareholders of both TCAP and TMB approved the planned merger between the two financial institutions. The merged bank will be renamed TMB Thanachart Bank.

Mr Banterng said the merger is expected to win approval from the Bank of Thailand in October or November, with both banks holding a shareholder meeting on consolidation later.

The deal is expected to be complete by December, in line with the existing time frame, he said.

The deal marks the Thai banking industry's largest merger, with considerations worth 156 billion baht, making it the sixth largest bank by assets.

After the integration, Dutch bank ING, TCAP, the Finance Ministry and Canada's Scotiabank will hold stakes of 21.3%, 20.4%, 18.4% and 5.6%, respectively, while minor shareholders will make up the rest.

The Finance Ministry holds a 25.9% stake in TMB and ING has a 25% stake. SET-listed TCAP holds a 51% stake in TBank, while Scotiabank owns the remainder.

Mr Banterng said TCAP will receive 80.7 billion baht from divestment of TBank's share sale to TMB. Of the total, 14.7 billion will be used for TBank's organisation restructuring, 45.2 billion baht will be used to buy TMB's newly issued shares, 12.1 billion baht for other investment and the remainder will be the company's cash flow.

Mr Piti said the bank plans to raise fresh funds worth 130 billion baht, with 20% derived from bond issuance and the remaining 80% from recapitalisation through transferable subscription right.

"TMB's funding mobilisation will be completed by November, while the merger deal and asset transfer will be completed by December this year, and by December 2021, respectively," he said.

Mr Piti said the merged bank will be focus on the auto leasing business, an area TBank has expertise in, while have lower funding costs, using YMB's expertise.

The new entity will concentrate on vehicle hire-purchase loans and the middle-income segment rather than low-income segment in order to maintain asset quality, he added.



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