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Published on November 23, 2007

Acap, together with the Japanese integrated financial services group Orix, signed a share-purchase agreement with Shin Corp on Tuesday, buying all the shares in Capital OK in a deal costing Bt990 million. Of this, Bt290 million was for the shares alone and Bt700 million for loans granted to Capital OK by Shin.

Acap's director Saringkarn Sutaschuto said yesterday that he expected Capital OK to record a net profit in 2009.

Capital OK's business plan, which will be drawn up in conjunction with the company's management, will be completed this year, he said. It includes revenues, expenses and a risk-management strategy that has to be adjusted to follow Acap's principles.

Acap also plans to offer more financial services to Capital OK's customers over the next two years.

Saringkarn said Acap, which is also an impaired asset manager, would record income of about Bt500 million this year - a rise of 50 to 60 per cent year on year. Over the first nine months of the year, the compan y had income of Bt403 million.

Saringkarn said the company expected 100-per-cent growth in income next year, with a significant contribution coming from its asset-management business.

Next year, financial institutions are expected to sell impaired assets worth about Bt50 billion to Bt60 billion, and Acap aims to win bidding for about 30 per cent of this, or Bt20 billion-worth of impaired assets.

The company also plans to bid for impaired assets worth about Bt20 billion, to be auctioned in Malaysia.

Saringkarn said Acap would grant loans totalling about Bt3 billion this year and around the same figure next year.

Siriporn Chanjindamanee The Nation