Vice chairman Charnchai Musignisakorn said its two core shareholders, the Finance Ministry and Bangkok Bank, would reduce their stakes of 30 per cent and 19 per cent, respectively. Then ACL would possibly look for a strategic partner - either Thai or foreign.

The Finance Ministry is expected to concentrate on its investment in Krung Thai Bank, the Kingdom's largest state-owned bank.

Bangkok Bank, the country's biggest bank, must comply with the Bank of Thailand's requirements and reduce its stake in ACL to 10 per cent by the end of June and zero by the end of December.

"With the country's current environment, it's quite hard for the major shareholders to sell the bank's shares. They would suffer a loss if they did so. Their investment cost is higher than the bank's book value," Charnchai said.

ACL's book value stands at Bt7.43 per share and its par value is Bt10, while the investment cost of the Finance Ministry is about Bt12 to Bt13 per share.

Separately, ACL president Thongchai Anathothai said the bank's three-year business plan would boost its earnings and increase its book value.

The bank aims to expand lending to Bt46.78 billion and Bt66 billion by the end of 2007 and 2008, respectively, from Bt32.27 billion last year.

It is also looking to increase its deposit base to Bt50.46 billion and to Bt69.15 billion by the end of this year and next year, respectively, from Bt26.18 billion last year.

Somruedi Banchongduang

 The Nation