Anz - thai military bank

[Bintang]

Hi mijan24,

Here's the latest about ANZ -Thai Military

Thai bank talk weighs on ANZ

By Anthony Hughes

June 21 2003

Investors have taken exception to the prospect that ANZ may soon invest up to $200 million in Thailand's Thai Military Bank.

The bank has been in talks for several months about a possible investment in the Thai business after chief executive John McFarlane signalled on April 9 that ANZ expects to invest 5 to 10 per cent of its capital in Asia over time.

According to Dow Jones, Thai Finance Minister Suchart Jaovisidha said yesterday that the Thai bank had reached a basic agreement for ANZ to take a 10 to 20 per cent stake.

But an ANZ spokesman said: "We were very surprised by these comments. There's still a considerable difference to go in terms of working through that opportunity and while they have a deadline for their recapitalisation in the next couple of weeks, our timeline is it will take another couple of weeks to finalise something."

ANZ investors gave a very clear signal that they would not look fondly on such a move, wiping 31c, or $470 million, off the value of the bank.

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The shares closed at $18.92.

Some analysts have questioned whether ANZ is serious about its Asian intentions but it already has an investment in PT Panin Bank in Indonesia and recently signed agreements for ventures in China and the Philippines.

Still, it is believed that there is in fact less than a 50 per cent chance that ANZ will proceed with the investment in Thai Military Bank, which is recapitalising to ensure it can stay in business after absorbing massive bad debt provisions.

The Thai Government also indicated it would buy some shares in the bank.

Mr McFarlane told investors after the half-year results that it was important that ANZ look abroad for growth to ensure it had a strong future.

However, it would not be making the big bets that cost in dearly in the past, such as the former South Asian arm, ANZ Grindlays, which was sold.

Some analysts had hoped ANZ would apply any spare capital to buying back its own shares, but it did not announce a buyback at its half-yearly results.

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