TFUND stakes sold to Prudential Corp

TFUND stakes sold to Prudential Corp

Thanachart Bank Plc and Government Savings Bank have sold their stakes in Thanachart Fund Management Company Ltd to Prudential Corporation Holdings. (Bangkok Post photo)
Thanachart Bank Plc and Government Savings Bank have sold their stakes in Thanachart Fund Management Company Ltd to Prudential Corporation Holdings. (Bangkok Post photo)

Thanachart Bank Plc (TBank) and Government Savings Bank (GSB) have sold their stakes in Thanachart Fund Management Company Ltd (TFUND) to Prudential Corporation Holdings Ltd, with the share purchase expected to be not less than 8.4 billion baht.

The transaction is related to how TBank will merge with TMB Bank Plc. TBank held a 75% stake in TFUND, with the rest held by GSB, while Prudential is an affiliate of Eastspring Investment Singapore Ltd.

“Under the agreement, TBank agrees to sell 25.1% in the first batch, out of the total 75% interest that it holds, in the issued share capital of TFUND to Prudential and GSB agrees to sell its entire interest of 25% of the issued share capital of TFUND to Prudential,” said Thanachart Capital Plc (TCAP) and TMB in a statement filed to the Stock Exchange of Thailand (SET) on Monday.

“Following the transaction Prudential would own 50.1% and Tbank [holding] 49.9% of TFUND.” 

Closing of these transactions is subject to meeting customary conditions including obtaining regulatory approvals and the completion of the purchase of shares in TBank by TMB as part of the merger transaction disclosed to the SET on Aug 8.

“TMB expects TFUND’s share sale transaction to complete after TMB closes its TBank’s share purchase transaction and becomes a shareholder of TBank,” said TMB.

The Finance Ministry is the largest shareholder in TMB, with a 25.9% stake, while ING Bank NV has a 25% stake. In TBank, TCAP holds a 51% stake and Canada's Scotiabank owns the rest.

The merger between TMB and TBank is set to mark the Thai banking industry's largest merger and acquisition deal, with considerations worth 156 billion baht.

Of the 156 billion, 130 billion baht is fundraising from TMB to buy out TBank, with 26 billion baht for business restructuring under the deal.


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