Thai lenders TMB, Thanachart approve $4.6b merger deal

Photo: Thanachart Bank

Thailand’s TMB Bank, Thanachart Capital (TCAP) and Scotia Netherlands Holding (BNS) have approved the $4.6-billion merger of TMB Bank and Thanachart Bank (TBANK).

Following the merger, TBANK will have total assets of about 1.9 trillion baht and approximately 10 million retail customers. It will become the sixth largest lender in Thailand.

TMB Bank said earlier this year that a non-binding agreement was sealed that would see the merger valued at as much as 140 billion baht ($4.6 billion).

In a stock exchange filing submitted on Friday, TMB said it has agreed to purchase more than 6 billion shares of TBANK, equivalent to a 99.96 per cent interest from TCAP and BNS. In addition, it will also offer to purchase the remaining 2.4 million shares (or 0.04 per cent) from all other minority shareholders of TBANK.

Upon closing the transaction, TCAP will itself hold up to 23.3 per cent, and acting on account of TBANK minority shareholders to hold 0.04 per cent, of the new entity after TMB Bank issues new shares to facilitate the merger, while BNS will hold up to 6.4 per cent.

As part of the agreement, the entire shares of TBANK’s subsidiary TBROKE and 75 per cent of TFUND will also be transferred to TMB Bank.

The purchase price of TBANK shares is defined as the book value of its shares plus profits from the restructuring and premium in an amount of 9.245 billion baht, and deducting the book values of TBROKE and TFUND. The price will be settled by cash or a cash equivalent, TMB Bank said.

The purchase price “is reasonable because the merger would significantly enhance the scale of the merged bank’s business, making it one of the leading banking franchises in Thailand,” it added.

 

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.