Thailand-listed Thanachart Capital Pcl (TCAP) has said that Canada-based Scotiabank is considering selling its entire stake in Thanachart Bank due to a shift in its strategy for the Asia Pacific region, according to its filing to the stock exchange.
Currently, Scotiabank holds 49 per cent in Thanachart Bank and Thanachart Capital holds the remaining 51 per cent.
The company’s statement cited that Scotiabank would offer its stake to large, financially strong and reputed international financial institutions acceptable to Thanachart Capital with the approval from the Bank of Thailand.
“The new shareholder partner should also have the capacity to co-manage with Thanachart Capital in positioning Thanachart Bank into a first-tier financial institution,” Somjate Moosirilert, executive vice president of Thanachart Capital Pcl, said.
TCAP share price has gone up 4.51 per cent to 34.75 baht per share after the stock market opened today. The trading value is 161.42 million baht at 10.33 am local time.
The analysis report by Kasikorn Securities suggests to ‘buy’ TCAP shares, giving the base price of 40 baht apiece. It cites that the possibility of the new partner should be one of the top international banks.
“Thanachart Bank has benefited in terms of management system from Scotiabank. The negative effect is quite limited. If the new partner has a better network, it will give the long-term benefit to TCAP and Thanachart Bank,” the report says.