PHOTO: Prasong Poontanea
PHOTO: Prasong Poontanea

TMB-Thanachart merger to be inked next month

business February 24, 2019 11:54

By The Nation

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The merger of TMB and Thanachart banks will begin next month, TMB chairman and finance permanent secretary Prasong Poontaneat said this weekend.

He said the new entity created would be fifth-largest local bank in terms of assets and would expand their shared capacity into overseas markets and increase their competitiveness in a tough sector.

The process to initiate the merger will take about four months and the merger itself is expected to be completed this year, Prasong said.

The merger will lead to recapitalisation of the bank, and the Finance Ministry is considering increasing its stock holdings, he said. 

The ministry is currently the largest shareholder in TMB, at 25.92 per cent.

TMB was adversely affected by the 1997 financial crisis and the government stepped in as part of its efforts to rescue the banking sector.

Prasong was optimistic that the merger would lead to a rise in the TMB share price, which has long been stagnant at close to its par value of Bt0.95 a share. 

Shares traded at Bt2.26 on Friday. The share price has risen recently on reports of the merger.