Tmb Pays Goodwill Penalty

[Mid]

TMB pays goodwill penalty

Merger with DBS and IFCT has failed to deliver

Monday September 10, 2007

DARANA CHUDASRI

It has taken three years and billions of baht in losses before TMB Bank executives finally acknowledged what was long suspected in the market _ the grand merger with DBS Thai Danu Bank and the Industrial Finance Corp of Thailand has proved to be a complete flop.

The much-touted 2004 merger between TMB Bank, DBS Thai Danu Bank and the Industrial Finance Corp of Thailand has led to massive write-offs for all parties. Analysts blame the failures on political interferance.

TMB, in its audited first-half financial statements, reported a net loss of 18.14 billion baht, including a charge of 12.237 billion for goodwill impairment.

snip

/Edit: Secondary link, as the above link may go dead after a few days. Don't know how long this link will stay live - Maestro

Edited September 10, 2007 by Maestro
Added link.

[laocowboy2]

Merely recognising what was pretty obvious from the outset - if you sweep three piles of rubbish together, you get...? This however obscures waht are much more deepseated problems at TMB. These include weak middle management, in-fighting in top management, poor morale throughout and a business model that defies understanding. Add in asset quality problems and a dire need to replenish the capital base plus the two main shareholders (government and DBS) hardly on speaking terms and you hardly have a reciope for success. If I was a (good) employee I would be trying to get another job asap. If I was a (good) customer, I would be shopping for another bank. If this hiatus drags on much longer, the good staff and the good customers will be gone, leaving...

[Mid]

ING 'no comment' on reported talks to take stake in Thailand's TMB Bank

14/9/2007 14:18 London Time

AMSTERDAM (Thomson Financial) - ING Groep NV declined to comment on media reports that it is in talks to take a strategic stake in Thailand''s fifth largest bank, TMB Bank.

TMB is planning to issue new shares as part of a recapitalisation plan and an unnamed source in TMB has been quoted saying the bank is in talks with ING about it taking a strategic stake in the Thai bank.

But an ING spokeswoman told Thomson Financial News the Dutch bancassurer has "no comment" on the speculation

euro2day.gr

Edited September 14, 2007 by Mid

[samran]

ING 'no comment' on reported talks to take stake in Thailand's TMB Bank

14/9/2007 14:18 London Time

AMSTERDAM (Thomson Financial) - ING Groep NV declined to comment on media reports that it is in talks to take a strategic stake in Thailand''s fifth largest bank, TMB Bank.

TMB is planning to issue new shares as part of a recapitalisation plan and an unnamed source in TMB has been quoted saying the bank is in talks with ING about it taking a strategic stake in the Thai bank.

But an ING spokeswoman told Thomson Financial News the Dutch bancassurer has "no comment" on the speculation

euro2day.gr

the current management of TMB is a lost cause by all reports. The ING interest is pretty common knowledge. If you like speculating, and you view TMB as a banking license and not much else, then it could be a good speculative stock. Similar to what GM Capital did with BAY.

Bound to be more political though...

[lannarebirth]

ING 'no comment' on reported talks to take stake in Thailand's TMB Bank

14/9/2007 14:18 London Time

AMSTERDAM (Thomson Financial) - ING Groep NV declined to comment on media reports that it is in talks to take a strategic stake in Thailand''s fifth largest bank, TMB Bank.

TMB is planning to issue new shares as part of a recapitalisation plan and an unnamed source in TMB has been quoted saying the bank is in talks with ING about it taking a strategic stake in the Thai bank.

But an ING spokeswoman told Thomson Financial News the Dutch bancassurer has "no comment" on the speculation

euro2day.gr

the current management of TMB is a lost cause by all reports. The ING interest is pretty common knowledge. If you like speculating, and you view TMB as a banking license and not much else, then it could be a good speculative stock. Similar to what GM Capital did with BAY.

Bound to be more political though...

samran,

Do you believe that foreign interests may be allowed to raise their stakes in Thai banks from 25% to say 49% at any near point in the future? Some of them might be worth a dabble, if so.

[samran]

samran,

Do you believe that foreign interests may be allowed to raise their stakes in Thai banks from 25% to say 49% at any near point in the future? Some of them might be worth a dabble, if so.

dunno to be honest, but oh if we were privvy to that information/thinking!!

Be interesting to see what GE's gameplan/strategy has been in Thailand. They've seemed to have made a commitment under the present law.

[lannarebirth]

samran,

Do you believe that foreign interests may be allowed to raise their stakes in Thai banks from 25% to say 49% at any near point in the future? Some of them might be worth a dabble, if so.

dunno to be honest, but oh if we were privvy to that information/thinking!!

Be interesting to see what GE's gameplan/strategy has been in Thailand. They've seemed to have made a commitment under the present law.

The GE Capital buying of a 25% stake at BAY is the only thing that's ever happened on the SET that got my attention. It could well lead to a trend, and pressure to raise stakes.

I'm no friend of banks or bankers, but the banks here are so abysmal, I can't help but think it would be good for the Thai people and the Thai economy to have access to cheaper capital from more fiscally responsible sources.

Edited September 14, 2007 by lannarebirth

[samran]

samran,

Do you believe that foreign interests may be allowed to raise their stakes in Thai banks from 25% to say 49% at any near point in the future? Some of them might be worth a dabble, if so.

dunno to be honest, but oh if we were privvy to that information/thinking!!

Be interesting to see what GE's gameplan/strategy has been in Thailand. They've seemed to have made a commitment under the present law.

The GE Capital buying of a 25% stake at BAY is the only thing that's ever happened on the SET that got my attention. It could well lead to a trend, and pressure to raise stakes.

I'm no friend of banks or bankers, but the banks here are so abysmal, I can't help but think it would be good for the Thai people and the Thai economy to have access to cheaper capital from more fiscally responsible sources.

from what I understand GE was aiming to enter the consumer credit market in a big way, rather than traditional banking. CC's, car loans etc.

For it being a trend, it is hard to as full banking licenses are as rare as hens teeth. But, if an opportunity arises, they'd go for a pretty penny.

[slimdog]

Do you believe that foreign interests may be allowed to raise their stakes in Thai banks from 25% to say 49% at any near point in the future? Some of them might be worth a dabble, if so.

Accoding to the SET website TMB is currently allowed 49% foreign shareholding, of which there are currently 2 billion shares still available (out of a total of about 170 billion ordinary shares issued)

Actual Figures are:

Authorized Capital :

- Common Stock : 167,367,412,790.00 Baht

- Preferred Stock : 19,919,972,000.00 Baht

Paid-up Capital :

- Common Stock : 165,367,412,790.00 Baht

- Preferred Stock : 19,919,972,000.00 Baht

Voting Stock :

- Common Stock : 16,536,741,279 Shares

- Preferred Stock : 1,991,997,200 Shares

Foreign Limit : 49.00000 %

Foreign Available : 2,066,314,193 Shares

Source: SET

[lannarebirth]

Do you believe that foreign interests may be allowed to raise their stakes in Thai banks from 25% to say 49% at any near point in the future? Some of them might be worth a dabble, if so.

Accoding to the SET website TMB is currently allowed 49% foreign shareholding, of which there are currently 2 billion shares still available (out of a total of about 170 billion ordinary shares issued)

Actual Figures are:

Authorized Capital :

- Common Stock : 167,367,412,790.00 Baht

- Preferred Stock : 19,919,972,000.00 Baht

Paid-up Capital :

- Common Stock : 165,367,412,790.00 Baht

- Preferred Stock : 19,919,972,000.00 Baht

Voting Stock :

- Common Stock : 16,536,741,279 Shares

- Preferred Stock : 1,991,997,200 Shares

Foreign Limit : 49.00000 %

Foreign Available : 2,066,314,193 Shares

Source: SET

Hmmm, I wonder if that was under the "case by case review" in this link. Maybe the worse trouble a bank is is, the more they'll let foreigners buy.

http://ctlo.com/bank.htm

[Mid]

DBS decides not to participate in recapitalisation of TMB Bank

Posted: 15 September 2007 0008 hrs

SINGAPORE : DBS has decided not to participate in the proposed US$1 billion recapitalisation of Thailand's TMB Bank.

The decision comes after several months of extensive discussions with Thailand's Ministry of Finance as well as the board and management of TMB.

In a statement out on Friday, the Singapore lender said it did not receive adequate assurance that it would have sufficient management control to effect the business and operational changes necessary to improve TMB's performance.

snip

channelnewsasia.com

[cclub75]

Do you believe that foreign interests may be allowed to raise their stakes in Thai banks from 25% to say 49% at any near point in the future? Some of them might be worth a dabble, if so.

Do you really believe... it would change something ?

DBS from Singapore burned themselves with TMB. To take a minority stake into such a "bank", is pure suicide. Or politicaly motivated.

TMB is a political bank. Used by the generals for them and for their friends. Like their toy.

On one hand it's good, because the generals won't let down TMB (the thai tax payers will eventually... pay the bill). However, for a foreign shareholder to hope to make profit looks like a real... challenge.

[Mid]

Dutch ING lauches bid for Thai TMB Bank - source

Mon Sep 17, 2007 3:36am EDT

BANGKOK, Sept 17 (Reuters) - Dutch financial group ING (ING.AS: Quote, Profile, Research) has offered to buy an initial 24.9 percent stake in Thailand's TMB Bank (TMB.BK: Quote, Profile, Research), an official of the Thai bank said on Monday.

The acquisition price had not been set and ING Group was likely to increase its stake later, the official, who declined to be named, told Reuters.

"They have bid for a initial stake of 24.9 percent," the official said.

reuters.com