BBL might sell out its stake in ACL Bank

Bangkok Bank (BBL) might opt to sell out its 19.3-per cent stake in ACL Bank through the Stock Exchange of Thailand (SET) after the deferral of the share divestment to Industrial Commercial Bank of China (ICBC) is likely as the deal depends on the new Financial Institution Act, expected to take into effect in the middle of next year.

"We are seeking other options (in selling out ACL Bank's shares), we might sell the shares in the stock market but ACL Bank's share price might decline," BBL's chairman Chatri Sophonpanich told reporters on Tuesday.

The country largest bank recently sign a memorandum of understanding to sell out the entire stake in ACL Bank to Industrial Commercial Bank of China.

However, the deal can go through only when the new act, which raises the ceiling foreign investors' ownership in Thai commercial banks from 25 per cent to 49 per cent, becomes effect. At present, foreign investors hold around 20 per cent in ACL Bank, a small bank.

If BBL and ICBC deal is completed, foreign share stake holding in ACL will be around 40 per cent exceeding the current rule.

- The Nation

Somruedi Banchongduang

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