TBank and TMB track towards union in 2021 with 10m customers

[snoop1130]

TBank and TMB track towards union in 2021 with 10m customers

By PHUWIT LIMVIPHUWAT

THE NATION

 

Executives from Thanachart Bank and Thai Military Bank present the opportunities to arise from their merger at a press conference on Friday. 

 

Thanachart Bank (TBank) and Thai Military Bank (TMB) will merge into one bank with 10 million customers, with the process expected to be completed in mid-2021.

 

In the new shareholding structure, Thanachart Capital (TCAP) will hold 20 per cent of the shares, followed by ING Bank, which acquired TMB in 2008, with 21.3 per cent. Of the remaining shares, the Finance Ministry will hold 18.4 per cent, Scotiabank (BNS) 5.6 per cent and minority shareholders 34.3 per cent.

 

After the two banks have been merged, their combined asset value will be Bt2 trillion with the single entity having 10 million customers and 19,000 employees, said Suphadej Poonpipat, chairman of the executive committee at TCAP, at a press conference held by the two banks on Friday.

 

During the merger process, shares will be transferred in accordance with the law, involving the equity fund raising through the issuance of new common shares and debt financing by TMB, said Piti Tantakasem, CEO of TMB Bank.

 

As part of the process, TMB will have to raise around Bt130 billion in order to purchase TBank’s shares. To do so, TMB plans to raise Bt42.5 billion by issuing new common shares. TMB will also raise Bt9.6 billion to Bt16 billion through debt financing to foreign institutional investors, said Piti.

 

TCAP is set to buy TMB shares worth Bt44 billion. Suphadej said that after the purchase, TCAP will have remaining capital of Bt10 billion. The management team of TCAP will manage the fund to generate further returns for its shareholders accordingly, he said. Suphadej declined to reveal details of the investment plans.

 

Both banks guarantee that clients will be unaffected by the merger and that they can continue to use the services of both banks until 2021. After that, clients will be able to continue using services from the new merged bank, and will have additional service options.

 

Source: https://www.nationthailand.com/business/30374539

 

-- © Copyright The Nation Thailand 2019-08-09

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[joebrown]

Naturally, the efficiency and standard of service offered by the merged bank(s) in Phetchabun town will be vastly improved! (Cue : Johnny Burnette singing "Dreaming, I'm always dreaming... ")

Edited August 10, 2019 by joebrown
Correct name of singer.

[Sydebolle]

Good luck to all those alien customers of those two banks. Had accounts with both of them, all in Thai, staff no English and the TMB apps simply too complicated. 

Switched to Bangkok Bank, also not known to be customer friendly but at least English is available - if you ask around - and Safari works as browser (unlike Firefox, which had problems with Bangkok Bank's Ibualuang site).