Scotiabank increases investment in Thailand's Thanachart Bank
February 03, 2009
270.00 Million CAD
On February 3, 2009, Scotiabank announced that it has completed the acquisition of an additional 24 per cent of Thanachart Bank, Thailand's eighth-largest bank and leading automobile lender, for THB7,655 million approximately C$270 million. Scotiabank will purchase 416 million shares from Thanachart Capital raising Scotiabank's holding in Thanachart Bank to 49 per cent, the regulatory limit for foreign banks in Thailand.
As a result of the investment Thanachart Bank's major shareholders now include Scotiabank, and Thanachart Capital Public Company Limited (holding 50.9 percent) with retail investors holding 0.1 percent. The higher stake in Thanachart Bank will also increase the number of Scotiabank representatives on Thanachart Bank's Board of Directors from two to three.
Thanachart Bank is Thailand's eighth-largest bank in terms of assets and the country's leading automobile lender. As of December, 31 2008 the consolidated net income of Thanachart Bank and its subsidiaries was 1,870 million baht (C$67 million), an increase of 543 million baht or 40.9 percent from the previous year.
Scotiabank, headquartered in Toronto, Ontario, is a Canadian Chartered Bank.
McCarthy Tétrault LLP represented Scotiabank, as acquirer, with a team led by Ian Arellano and Suzanne Murphy.