Thai KBANK takes over Shanghai’s Starbright Finance for $22m

Logo from KBANK's website

The Board of Directors of Thailand-based Kasikornbank PCL (KBANK) has approved the acquisition of Shanghai-based Starbright Finance Co Ltd for a total investment not exceeding $22 million, after it has got the nod of China Banking Regulatory Commission.

This acquisition will support its (KBANK) expansion in China, according to its filing to the Stock Exchange of Thailand today.

On the same day, KBANK announced that Sittichai Mahaguna, a former head of corporate finance from CIMB Thai Bank, will be the new head of acquisitions, infrastructure funds and real estate investment trusts (REITS).

When asked about the bank’s M&A strategy, he said KBANK would focus more on large-sized outbound deals next year.

“It is difficult to say how many deals we expect to seal because the M&A deals have many uncontrollable factors. However, we can see that more Thai companies have expanded into other countries via M&A as they would like to diversify risk from the domestic economic slowdown,” he told media.

After a launch of a 3.5-billion-baht Amata Summit Growth REIT, KBANK still has two more REITS worth about 15 billion baht ($422.5 million) in the pipeline to kick off this year. One of them will be an office building and the other will be warehouses.

Sittichai cited that it had already launched four IPOs worth around 5 billion baht ($140.84 million) and there would be no IPO deals left in 2015. However, it has around 7-8 IPO deals with a combined market capitalization of over 10 billion baht ($281.68 million) to launch in 2016. Most of them are related to energy business.

It expects to see the investment banking grow 20-30 per cent next year, following the recovery of Thai economy, he added.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.