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Published on August 10, 2007

The bank is drawing up a plan for its group from 2008-2010 that will be in line with phase II of the country's financial-sector restructuring and the expected business environment, he said.

Chaiwat said that since the competition conditions for financial businesses were being changed, the group needed to adjust its strategy accordingly.

SCIB will be seeking strategic partners for all five of its affiliates - Siam City Securities, Siam City Asset Management, Siam City Insurance, Max Life Insurance, and Ratchthani Leasing.

Since the Financial Institutions Development Fund (FIDF), which is the major shareholder in the mid-sized bank with a stake of 47.58 per cent, is scheduled to be closed down by 2013, the bank is preparing for the sell-off of its stake

"The bank has been approached by around 10 overseas investors, of which about five are offshore banks and the remainder foreign funds, to present the bank's information to them. This reflects their interest in the bank," Chaiwat said.

SCIB wants strategic partners that can help its foreign operations, particularly in Asia. The bank's size, its network of around 400 branches nationwide and high capital-adequacy ratio of 13 per cent make it interesting to foreigners, he said.

Chaiwat said the bank would also welcome strategic partners for its subsidiaries, but would maintain a minimum stake of 51 per cent in each to retain management control. The only exception is Ratchthani Leasing, in which its stake is only 39.76 per cent

For the strategic partner for Siam City Securities, SCIB wants an investor with expertise in foreign businesses. The bank holds a stake of 99.79 per cent in the securities firm.

SCIB yesterday signed a contract to sell 40 per cent of Siam City Asset Management to the Government Pension Fund, thereby diluting its stake in the company to 60 per cent.

Somruedi Banchongduang

The Nation