More strategic partners possible at BankThai
From left, TPG Capital representative Weijen Shan, Blum Capital chairman Richard Blum, Bank of Thailand Governor Tarisa Watanagase, BankThai chairman Tawee Butsunthorn and BankThai president Phirasilp Supapholsiri pose for the media during the introductio
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One of BankThai's new foreign shareholders said that despite its long-term investment policy, it is willing to invite other strategic partners to join the mid-sized bank.
Richard Blum, chairman of Blum Capital, a new shareholder, said the company hoped to invest in BankThai for the long term but had not set a specific time frame.He said the company's investment in each local company lasted an average of five to seven years. For example, it invested in Korea First Bank of South Korea and sold its stake to Standard Chartered Bank five years later. In some countries, the company has kept its investments for 20 years. On Wednesday, the bank introduced its new foreign shareholders - TPG Capital, Blum Capital and Marathon Asset Management - who are associates of TPG Newbridge, the Asian investment arm of the Texas Pacific Group. The three together hold 32.87 per cent of the shares, of which 24.99 per cent are held by TPG Capital. Blum Capital and Marathon Asset Management hold 3.94 per cent each. The shareholding of the three investors is equal to that of major Thai shareholder, the Financial Institutions Development Fund. Blum said BankThai did not need to acquire shares in other banks right now, though stake acquisition is a future strategy. After recapitalisation was complete, the bank would concentrate on growth in the three core areas: corporate banking, small and medium enterprises and retail businesses. Blum said the bank was likely to be strengthened in the future, but he said Blum Capital did not have a specific target for a return on investment. It would be in line with the market environment. "With the country's strong fundamentals, we believe Thailand's economy will grow further over the next few years. The Kingdom's current political uncertainty will be a short-term issue," he said. Blum said that with Thailand's strong potential for economic growth, his company would look for other investment opportunities here. BankThai, the country's ninth-largest bank in terms of assets, increased its capital in April by 731.45 million shares, offering the TPG Newbridge group Bt4.17 per share. In May, the bank announced an increase of capital by 2,225 shares at Bt3.45 apiece, offered to its existing shareholders. The bank's capital adequacy ratio currently stands at 8.9 per cent, of which 6 per cent is first-tier capital. After its share issuance is complete, the adequacy ratio is expected to increase to 13 to 14 per cent, of which 12 per cent would be first-tier capital. Somruedi Banchongduang The Nation
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