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.