TMB bank sells 11.6-per-cent stake in tmb asset management to adkinson securities

The bank yesterday informed the Stock Exchange of Thailand that it had recently signed an agreement with ASL to sell 13,954,900 shares in MFC Asset Management, accounting for 11.63 per cent of registered capital. The selling price was Bt14.50 a share. Sadawut Teachaubol, chief executive officer of ASL, said this was not a significant deal for the company.

ASL decided to invest in MFC Asset Management because the share price fell considerably, while its performance is likely to grow in the future. Besides, MFC Asset Management is a dividend stock. The company paid a dividend with yield of 5 per cent, which made it worthwhile to invest in, he said.

"Formerly, ASL acquired 4 per cent of MFC Asset Management's shares. After the transaction is complete, our proportion will increase to 16.21 per cent. We can't tell you at the moment that we will buy additional shares in the future, because we have to keep an eye on the market sentiment," he said.

ASL has cash flow of Bt1 billion, which is enough to purchase MFC Asset Management's shares, said Sadawut.